Silver Elephant Mining Corp 6-K, filed Sep 8, 2020
Silver Elephant Mining Corp. (SILEF)
6-K
2020-09-08
For: 2020-09-08
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April 06, 2026
About this 6-K
Silver Elephant Mining Corp filed this 6-K on September 8, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of September,
2020
Commission
File Number 000-55985
SILVER ELEPHANT MINING CORP.
(Translation
of registrant’s name into English)
Suite 1610 – 409 Granville Street
Vancouver, British Columbia, Canada V6C 1T2
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F
Form 20-F
☒ Form
40-F ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1):
☐
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if
submitted solely to provide an attached annual report to security
holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(7): ☐
Note: Regulation S-T
Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document
that the registrant foreign private issuer must furnish and make
public under the laws of the jurisdiction in which the registrant
is incorporated, domiciled or legally organized (the
registrant’s “home country”), or under the rules
of the home country exchange on which the registrant’s
securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been
distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a
Form 6-K submission or other Commission filing on
EDGAR.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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SILVER
ELEPHANT MINING CORP.
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Date:
September 8, 2020
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/s/ Brigitte
McArthur
Brigitte McArthur
Corporate Secretary
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INDEX TO EXHIBITS
News Release dated
September 8, 2020
Exhibit 99.1
Silver Elephant Acquires Sunawayo Silver Project Bordering Historic
350 Million Silver oz Malku Khota Project
Vancouver, British Columbia,
September 8, 2020 – Silver Elephant Mining
Corp. (“Silver
Elephant” or
“Company”) (TSX:
ELEF, OTCQX:SILEF, Frankfurt:1P2N) announces that it has entered into a binding sales and purchase
agreement (“SPA”)
with a private party (“Vendor”)
to acquire the Sunawayo silver-lead mining project
(“Sunawayo”)
located immediately adjacent to the Malku Khota silver project in
Bolivia. Malku Khota has a historic (2011) resource of 350 million
oz of silver contained in its greenfield Wara, Sucre, and Limnosa
deposits, which are only 200 meters southeast of the Sunawayo
border (Southeast border). (Cited historic resource estimates are
not current mineral resources or mineral
reserves.)
Sunawayo is
patented land which Silver Elephant has acquired through the SPA,
whereas Malku Khota is unpatented land administered by the government’s Corporación
Minera de Bolivia (COMIBOL). In January 2020,
Silver Elephant applied for a mining production contract (MPC) with
COMIBOL that would give it the rights to mine and explore Malku
Khota. The application was received by COMIBOL and is under
review.
The purchase of Sunawayo includes a fully
permitted 100 ton-per-day open-pit mining operation that produces a
lead concentrate. Sunawayo has a strike of 17 km which covers 59.5
square km of prospective area. Sunawayo has ready access to water
and power. And by road it is 165 km from Bolivia’s
5th
largest city,
Oruro.
Joaquin
Merino, VP for South America Operations, states:
“A combined
Sunawayo-Malku Khota district would feature a 34 km property extent
encompassing an area of over 110 square kilometers. We believe the
district is situated within a very large hydrothermal system that
produced the Malku Khota sedimentary exhalative (Sedex)
deposit comprising a historic resource of 350 million oz
silver based on 42,704 meters of drilling that took place between
2007 and 2010. The district is remarkably under-explored. Roughly
3.5 km of strike have been drilled from the Southeast border into
Malku Khota project, yet the Malku Khota lithological trend and
host-sandstone units extend for another 8 km northwest into
Sunawayo without receiving a single exploration drill hole. The
current mine pit (approximately 180m by 75m) is located 10 km
northwest of the Southeast border and the pit has also never been
drill-tested.”
Forty-eight
samples, spanning 11 km, were taken at Sunawayo, where multitudes
of visible mineralization were observed during a recent site visit.
Assay results are expected in early October. Visit www.silverelef.com
for project maps, photos, and a recorded video
presentation.
About Sedex Deposits
Sedex-style
Pb–Zn–Ag deposits account for 50% of the world’s
lead and zinc reserves and 30% of the world’s silver
resources, according to 2019 USGS and GSGS Global Data. Large,
regional scale Sedex systems can span hundreds of kilometers,
forming large tonnage deposits.
Examples
are:
Teck’s Red
Dog mine is the USA’s largest silver producer, producing 6.6
million oz silver annually, along with 1.2 billion pounds of zinc
and 226 million pounds of lead.
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Glencore’s
Mount Isa mine has proven and probable reserves of 97 million
tonnes at 7.0% zinc, 3.3% lead, and 60 g/t silver within measured
and indicated resources of 419 million tonnes at 7% zinc, 3.7% lead
and 67 g/t silver. It has been in operation since
1923.
Teck’s former
Sullivan mine in British
Columbia, Canada has in
its lifetime produced 160 million tons of ore containing 8 million
tons (16 billion pounds) of lead, 7 million tons (14 billion
pounds) of zinc, and 285 million oz of silver. After 92 years of active
production, the Sullivan mine was closed in 2001.
Malku
Khota was described in the May 2011 technical report by GeoVector
management as a Sedex-style deposit with a late hydrothermal
overprint associated with the uplift of the Bolivian Altiplano
which has endowed the deposit with indium and gallium in addition
to silver, lead, and zinc.
Proposed Transaction Summary
Subject to the provisions of the SPA, the Vendor
agrees to irrevocably transfer the mining rights of the Sunawayo to
Silver Elephant upon the latter’s paying it $6,500,000. That
payment will consist of $300,000 on SPA signing with the remaining
$6,200,000 to be paid in cash over a one-year period in
twelve equal monthly installments, starting March 1,
2021.
Closing Remarks
Silver
Elephant’s goal is to explore near the Southeast border, in
and around the current open pit mine, and along the 8 km Malku
Khota lithological trend within sandstone units at Sunawayo. In
parallel, the Company continues to advance a mining production
contract application with COMIBOL for the rights to mine and
explore Malku Khota.
Silver
Elephant has amassed a large silver resource portfolio, consisting
of:
●
Silver: Sunawayo (59.5 km2),
within 200 meters of Malku Khota’s historical 350-million-oz
Sedex-style silver deposit. Sunawayo is fully permitted for a 100
tpd mining operation.
●
Silver: Pulacayo (35.5 km2),
with 93,311 meters drilling. An updated resource estimate is
expected in September. Refer to Company news dated July
20.
●
Gold/silver: Triunfo (25.6 km2),
with step-out drilling next to 95 meters grading 0.4 g/t Au, 22g/t
Ag, 1% Pb+Zn. First batch of assay results is expected in October.
Refer to Company news dated August 19.
Joaquin
Merino, VP for South America Operations, further
states:
“Bolivia has
more than 5 centuries of proud mining tradition and is home to
Cerro Rico and Pulacayo, two of world’s largest silver mines,
based on historical production. I have been working in Bolivia
since 2005 and we are thrilled to explore these elephant-sized
silver projects at this exciting time of rising silver prices in a
country opening up to investors after a decade of
under-investment.”
All
currencies are in USD.
Qualified Person
The technical contents of this news release have
been prepared under the supervision of Danniel Oosterman, VP
Exploration. Mr. Oosterman is not independent of the Company in
that he is employed by it. Mr. Oosterman is a qualified person
(“QP”) as defined by the guidelines in NI 43-101.
Historic resource numbers for the Malku Khota project cited in this
release are taken from the May 10th,
2011 Technical Report completed by Geovector Management Inc., AGP
Mining Consultants, and Pennstrom Consulting. A qualified person
has not done sufficient work to classify the historical estimate as
current mineral resources or mineral reserve, and the Company is
not treating the historical estimate as current mineral resources
or mineral reserves.
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About
Silver Elephant
Silver
Elephant is a premier silver mining company. The Company’s
goal is to enable shareholders to own as much silver in the ground
as possible.
SILVER
ELEPHANT MINING CORP.
ON
BEHALF OF THE BOARD
“John Lee”
Executive Chairman
For
more information about Silver Elephant, please contact Investor
Relations:
+1.604.569.3661
ext. 101
ir@silverelef.com www.silverelef.com
Neither the Toronto Stock Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Toronto
Stock Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain
statements contained in this news release, including statements
which may contain words such as “expects”,
“anticipates”, “intends”,
“plans”, “believes”,
“estimates”, or similar expressions, and statements
related to matters which are not historical facts are
forward-looking information within the meaning of applicable
securities laws. Such forward-looking statements, which reflect
management’s expectations regarding Company’s future
growth, results of operations, performance, and business prospects
and opportunities, are based on certain factors and assumptions and
involve known and unknown risks and uncertainties which may cause
the actual results, performance, or achievements to be materially
different from future results, performance, or achievements
expressed or implied by such forward-looking
statements.
These
factors should be considered carefully, and readers should not
place undue reliance on the Company’s forward-looking
statements. The Company believes that the expectations reflected in
the forward-looking statements contained in this news release and
the documents incorporated by reference herein are reasonable, but
no assurance can be given that these expectations will prove to be
correct. In addition, although the Company has attempted to
identify important factors that could cause actual actions, events,
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events, or results not to be as anticipated, estimated, or
intended. The Company undertakes no obligation to publicly release
any future revisions to forward-looking statements to reflect
events or circumstances after the date of this news or to reflect
the occurrence of unanticipated events, except as expressly
required by law.
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