Prospero Silver (PSL-V) got too aggressive with its announcements and as a result the British Columbia Securities Commission (BCSC) has scrutinized the Vancouver-based company.
While Prospero is an early-stage exploration company with zero resource estimates on any of its projects, its website painted a different picture and therefore Prospero has made several retractions.
The first problem arose around its San Luis del Cordero project in Durango, Mexico, where on its website, Prospero indicated it had a resource estimate based on just three drill holes.
Such a limited sample clearly does not jive with National Instrument 43-101 rules and as a result, the company retracted the statement saying “more work is required before making a current resource estimate.”
Prospero also errored by issuing tonnages and grades on exploration targets at the project despite not having the technical information required to make such estimates. Consequently, it withdrew those statements.
And the problems didn’t stop there.
There were issues with the technical report for its Baborigame project in Chihuahua, Mexico.
The report was issued in February of this year, and while not making any historical or current resource estimates, it did use polygons to indicate mineralization on what is known as the Los Angeles vein.
While there is nothing wrong with that as is, where the company ran with it was problematic.
Such problems arose when the company issued a historical estimate of 76,000 tons with an average grade of 13.3 grams gold and 65 grams silver based on data compiled from an old longitudinal section showing samples with gold and silver assays.
Prospero now reveals that the source, date, grade and other relevant information, are not verifiable and that the underground workings at the site are inaccessible.
It has now retracted the estimate. Prospero’s sloppiness also carried over to its handling of its Campana project in Durango, where it outlined contained tonnes of silver without giving any grades.
“The company retracts the quantity, as it does not have a basis to estimate ranges of tonnes and grade for a potential exploration target,” Prospero said in a statement.
Compounding Prospero’s problems with the BCSC were two newsletter reports to which its website provided links.
Prospero now says the reports contain “potentially misleading comments relating to the company’s Baborigame and Cordero reports.”
The company notes it did not commission or pay remuneration for the reports which, it says, misquoted tonnage and grade and failed to retain the cautionary language included in the technical reports.
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