MONTREAL, June 20, 2016 /CNW/ - Cyprium Mining Corporation
("Cyprium" or the "Company") (TSX-V: CUG and CUG.DB)
is pleased to announce the results from nine underground samples
taken from an oxidized zinc body on level 14 as part of its ongoing
exploration program of the Potosi
silver mine located in Santa Eulalia,
Mexico.
The nine samples were taken from level 14 of the Santo Domingo body and averaged 37% Zn over an
average sample width of 1.53m. The oxide zinc material is mainly
hemimorphite, a zinc silicate mineral, and contains variable but
generally low concentrations of lead, iron and manganese. Given the
positive nature of these results, Cyprium has taken an additional
thirty-five samples from level 14 which will be sent for analysis
shortly. Oxidized zinc material is different from the more usual
zinc sulfide produced by flotation in most zinc mines, including in
most areas of the Potosi mine, and
requires different processing techniques to recover the zinc
metal.
AREA
|
SAMPLE
|
Width
|
Ag
g/t
|
Pb%
|
Zn
%
|
Fe%
|
Mn%
|
SANTO
DOMINGO
|
156472
|
1.00
|
27
|
0.71
|
38.79
|
7.78
|
1.31
|
SANTO
DOMINGO
|
156473
|
1.50
|
24
|
0.70
|
40.69
|
2.97
|
1.18
|
SANTO
DOMINGO
|
156474
|
2.30
|
20
|
0.94
|
41.18
|
8.39
|
0.61
|
SANTO
DOMINGO
|
156475
|
1.50
|
21
|
0.27
|
48.77
|
2.76
|
0.11
|
SANTO
DOMINGO
|
156476
|
1.50
|
16
|
3.45
|
21.10
|
23.00
|
1.45
|
SANTO
DOMINGO
|
156477
|
2.00
|
26
|
0.37
|
47.36
|
3.28
|
0.07
|
SANTO
DOMINGO
|
156478
|
2.00
|
21
|
0.99
|
36.62
|
7.13
|
0.21
|
SANTO
DOMINGO
|
156479
|
1.00
|
8
|
1.88
|
19.30
|
24.10
|
0.24
|
SANTO
DOMINGO
|
156480
|
1.00
|
9
|
1.10
|
24.80
|
27.50
|
0.06
|
|
|
1.53
|
|
|
37.06
|
|
|
Mr. Alain Lambert, Chairman and
CEO of Cyprium stated: "The results announced today are part of an
ongoing exploration program to evaluate the potential of different
known mineralization in the Potosi
mine. The Santo Domingo body where
the samples were taken, also known as Main Silicate body, was
partly mined in the past and efforts are underway to determine the
volume and grades of remaining material. This area is not accessed
by the recently rehabilitated Potosi No. 3 shaft that will be used
to provide services such as compressed air and for haulage of
broken mineralized rock from Tunel
body on levels 2-4 (see News Releases of June 9 and 13, 2016) where underground
development and exploration will begin shortly."
Mr. Lambert concluded: "Exploration around the Main Silicate
body at level 14 and eventually at levels 9 and 10 around the
Potosi No. 5 shaft will provide us with valuable information that
will be used to make a decision regarding means to gain access to
that body, including the eventual rehabilitation of Potosi No. 5
shaft."
Past production from the Santo
Domingo body was from the Potosi No. 1 and Potosi No. 5
shafts and from the Buena Tierra shaft on neighboring ground
controlled by Grupo Mexico. Proposals for gaining shaft access to
the Santo Domingo body are
currently under consideration.
Mineralization in this area is exposed in a large chimney that
extends over several levels. Although most of the mineralization on
the upper levels of the Potosi
mine is oxidized, local areas with preserved sulfides on the upper
levels were discovered in the last few decades (1). The
main exposures of sulfide mineralization studied to date are on
levels 9 to 11, but the sulfide material also extends upward to
level 6. Such sulfide orebodies were not economically exploitable
prior to the advent of selective flotation in the early 1900's and
were evidently left behind for this reason and later forgotten.
These "perched" sulfide bodies were possibly preserved due to the
vagaries of past oxidation. Assay results for samples of sulfide
mineralization from Levels 6, 9, 10 and 11 on the replacement body
were announced previously (see News Releases of August 12 and September 3,
2015).
The Santa Eulalia
District
Santa Eulalia is a world class
polymetallic mining district located in the central part of the
State of Chihuahua, Mexico,
approximately twenty-two kilometers east of the City of Chihuahua.
Mineralization in the area was originally discovered during the
Spanish colonial period in the 1500's, and recorded production has
occurred over more than 300 years. Santa
Eulalia ranks as one of Mexico's primary silver and base metal
producing districts with nearly 450 million ounces of silver and
substantial amounts of lead and zinc mined. The nature of the
deposit in the Santa Eulalia
district is a carbonate replacement deposit and is the historically
largest of its type in Mexico.
Mineralization occurs in an area about 10 km in length and 5 km in
width. Production and reserves for the district have been
estimated to be about 50 million metric tons (2) with
grades of 125-350 g/t Ag, 2-8% Pb and 3-12% Zn (2) (3),
along with appreciable quantities of tin and vanadium.
The Santa Eulalia district
covers approximately forty-eight square kilometers and is divided
into three areas, the West Camp, the Central Camp and the East
Camp. The Potosi silver mine is
located in the West Camp. The West Camp has produced most of the
minerals from the district from an area 4 km long in a north-south
direction and 2 km wide in an east-west direction, with the
Potosi silver mine being one of
the primary producers.
Based on the geology, past mining activity and the exploration
work completed by the Company to date, the Potosi mine, the Company believes that the
project warrants further exploration. Widely spaced sampling on
levels 3-4 in the area of the Potosi No. 3 shaft (Tunel body) and levels 6 and 9-11 in the area
of the Potosi No. 1 shaft (Santo
Domingo or Main Silicate body) has shown that mineralized
material of interesting grades is exposed at the margins old stopes
and adjacent areas, and this work will continue in order to
evaluate the potential for defining resources.
Geological Setting, Deposit Type and Mineralization
Mineralization in the Santa
Eulalia district is characterized by massive sulfides,
dominantly pyrrhotite, sphalerite, galena and pyrite that are
hosted mainly in horizontal mantos and steep chimneys of sulfide
material that replace limestone, with some breccia bodies also
occurring. Mineralized bodies occur along laterally
continuous discrete structural zones that mainly trend in a
north-south orientation, with mineralization forming preferentially
in certain stratigraphic units. Past mining has reached to as
much as 700 meters depth below the surface on 21 levels.
Production in the West camp was diminished until the late 80's with
the discovery of new mineralization. Currently there is
little production in the district.
National Policy 43-101 Report
Cyprium has engaged Dr. Craig
Gibson to complete a National Instrument 43-101 report with
respect to the initial mine levels 2, 3 and 4 of the Potosi silver mine. It is expected the report
will be completed before the end of June
2016. The report to be prepared by Dr. Gibson shall not
contain a resource or reserve calculation.
Quality Assurance and Control
Samples taken in underground workings are typically channel
samples. Sample cuttings consist of rock chips taken along
pre-marked channels approximately 15-20 cm in width that span the
mineralized zone and are collected at the site by an experienced
sampling crew under the supervision of a Company geologist.
Sample material, consisted of from 2.0 to more than 4.7 kg of
material, was placed in labelled plastic bags that are sealed with
ties at the collection site. The samples are then transported
from the mine and stored at the Company's or contractors surface
facilities or are taken directly to the lab preparation
facility. The samples are transported in Company vehicles and
delivered to the sample preparation facility by personnel of the
contractor.
All samples were analyzed in Vancouver for the reported metals by the
ME-OG62 method for higher grade samples. Samples with more
than 30% zinc were analyzed by the Zn-VOL50 potentiometric
titration method using a 4 acid digestion. For these initial
high grade samples, internal control samples were not used, but the
laboratory applies strict quality control procedures. ALS
Chemex is part of ALS Global, an internationally recognized
analytical laboratory.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Qualified Person: Dr. Craig
Gibson, Certified Professional Geologist, prepared the
summary of public historical information on the Santa Eulalia district, and has reviewed the
appropriate portions of this news release and approved the contents
thereof. Public information included in this release are
based on work by from a PhD dissertation by Peter K. M. Megaw and information from the
Mexican Geologcial Survey (Servicio Geologico Mexicano).
References:
(1) P. Megaw, pers. Comm.
(2) Megaw, P.K.M., 1990, Geology and geochemistry of the
Santa Eulalia mining district,
Chihuahua, Mexico, unpublished PhD
dissertation, University of Arizona,
461 pp.
(3) Bustos-Diaz, J.L. and Arzabala-Molina, J., 2007,
Monografia Geologico-Minera del Estado de Chihuahua, Servicio
Geologico Mexicano, 640 pp.
This news release contains "forward-looking information"
(within the meaning of applicable Canadian securities laws) and
"forward -looking statements" (within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995). Such statements
or information are identified with words such as "anticipate",
"believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words
suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's
anticipated plans for developments of the Company and its mining
projects".
Such forward-looking information or statements are based on a
number of risks, uncertainties and assumptions which may cause
actual results or other expectations to differ materially from
those anticipated and which may prove to be incorrect. Assumptions
have been made regarding, among other things, management's
expectations regarding future growth, plans for and completion of
projects by Company's third party relationships, availability of
capital, and the necessity to incur capital and other expenditures.
Actual results could differ materially due to a number of factors,
including, without limitation, operational risks in the completion
of Company's anticipated projects, delays or changes in plans with
respect to the development of Company's anticipated projects by
Company's third party relationships, risks affecting the ability to
develop projects, risks inherent in operating in foreign
jurisdictions, the ability to attract key personnel, and the
inability to raise additional capital. No assurances can be given
that the efforts by the Company will be successful. Additional
assumptions and risks are set out in detail in the Company's
MD&A, available on SEDAR at
www.sedar.com.
Although the Company believes that the expectations reflected
in the forward-looking information or statements are reasonable,
prospective investors in the Company's securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law. Investors should note that the Potosi silver mine and La Chinche property
have no established mineral resources or mineral reserves as
defined by NI 43-101. Although Cyprium Mining has made a production
decision regarding the Potosi
silver mine based on historical production records and results from
recent sampling, a feasibility study of its projects has not been
completed and there is no certainty that the proposed operations
will be economically or technically viable.
SOURCE Cyprium Mining Corporation