Prospero gets slapped by Securities Commission

Prospero Silver (PSL-V) got  too aggressive with its website pronouncements and as a result the British Columbia Securities Commission has come down on 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 as a result it has issued several retractions.

Issue number one arose around its San Luis del Cordero project in Durango, Mexico where, on it 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 has retracted the statement saying “more work is required before making a current resource estimate.”

Prospero also errored by issuing tonnages and grades of exploration targets at the project despite not having the technical information required to make such estimates. As a result, it retracted those statements as well.

And the problems didn’t stop there.

There were also 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 in=-and-of-itself, where the company ran with it was problematic.

Such problems arose when the company went and issued a historical estimate of 76,000 tons with an average grade of 13.3 grams gold and 65 grams silver based on the data – data that was compiled from an old longitudinal section showing samples with gold and silver assays.

Prospero now reveals that neither the source, nor the date, nor the grade nor any other relevant information are verifiable and that the underground workings at the site are inaccessible.

It has now retracted the estimate.

Prospero’s sloppiness carried over to its handling of its Campana Project in Durango Mexico as well 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 commission were two newsletter reports which its website provided links to.

Prospero now says the reports contain “potentially misleading comments relating to the Company’s Baborigame and Cordero reports.”

The company says it did not commission or pay remuneration for the reports, which it says,  misquoted tonnage and grade and failed to include the cautionary language included in the technical reports.