Rio Silver Inc. has announced that it has acquired by application, an additional 553 hectare concession immediately west of and adjoining to the Niñobamba Silver-Gold Project (Niñobamba) that now comprises 3,653 hectares. The new concession covers a significant exploration program conducted by Newmont Mining Corporation and the concession title is expected to be granted from the Peruvian Ministry within the first half of 2017. The new concession will be included in the Option Agreement with Magellan Gold Corporation (Magellan). In 2016, the company acquired three concessions adjacent to the main Niñobamba zone from Newmont Mining Corp. and Southern Peru Copper Corp. The acquisition included an extensive database with results and reports from a substantial exploration program also encompassed by the 553 hectares. Significant exploration was completed within the new concession that covers extensive alteration believed to be part of the same high-sulphidation silver-gold system identified on the main Niñobamba zone located 6.5 kilometres to the east. Four prospective areas were identified by the previous owners of which a zone called Jorimina returned prospective precious metal results. The Jorimina zone is situated within a collapsed caldera and the rocks are dominantly rhyolite to dacite volcanics. Gold and silver mineralization in the zone is related to north easterly striking, steeply dipping, quartz-galena-pyrite veins and veinlets. Surface work programs completed by Newmont Mining included mapping, 2114 rock samples, and induced polarization geophysics that identified a gold anomalous area of approximately 700 metres by 1,000 metres and four strong chargeability anomalies coinciding with gold-silver in rock anomalies. Two of the four chargeability anomalies were defined as 680 metres by 150 metres and 700 metres by 200 metres. Highlights of the surface sampling from channel rock samples from the historic database include 17.4 metres of 3.06 grams per tonne (g/t) Au and 200 metres of 0.26 g/t Au. The company has not completed work to verify the results of the historical surface work and diamond drilling.