Montreal,
Quebec - August 22, 2016 – (Investorideas Newswire) Cyprium Mining Corporation
(“Cyprium” or the “Company”) (TSX-V: CUG) is pleased to announce the results from
additional 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
the historic Santa Eulalia, Mexico.
The
thirty six samples were taken from two historic stopes on level 14 of the Santo
Domingo body, and averaged 30.2% Zn over an average sample width of 3.00
m. Two samples assayed less than 10%
zinc and two samples were below detection levels for the zinc assay utilized,
and 0 was used in the calculation of the average. If the two samples with zinc assays below
detection are left out, the average is 32.0% zinc for the remaining 34
samples.
Assay
results for nine samples of similar zinc oxide material from a third smaller stope
on the same level assayed 37% zinc as previously announced (see News Release of
June 20, 2016). The oxide zinc material
is mainly hemimorphite, a zinc silicate mineral, and contains variable but
generally low concentrations of lead, iron, manganese and arsenic. Oxidized
zinc material is different from the more usual zinc sulfide produced by
flotation in most zinc mines and requires different processing techniques to
recover the zinc metal. The results announced today are part of an ongoing
exploration program to evaluate the potential of known mineralized areas.
Mr.
Alain Lambert, Chairman and CEO of Cyprium commented: “The three areas where we
are currently focusing our exploration efforts inside the mine are the Tunel
body at level 2 to 4, the oxide zinc body on level 14 and the sulfide
mineralization in the Santo Domingo body, also known as Main Silicate body. The
Santo Domingo body, which was partly mined in the past on
levels 6, 9, 10 and 11, assumes top priority in terms of evaluation and preparations
for exploitation.”
Results
of sampling from the Santo Domingo body taken during the due diligence period
prior to the acquisition of a controlling interest in the Company’s Potosi
joint venture, were previously announced and showed significant silver, lead
and zinc values (see News Releases of August 12th and September 3rd,
2015) as summarized in the table below.
|
AREA
|
SAMPLES
|
Width
|
Ag g/t
|
Pb%
|
Zn %
|
Fe%
|
Mn%
|
|
Level 6
|
3
|
1.53
|
733
|
1.1
|
0.5
|
7.78
|
1.31
|
|
Level 9
|
10
|
1.12
|
246
|
4.3
|
4.3
|
2.97
|
1.18
|
|
Level 10
|
15
|
1.16
|
78
|
3.3
|
4.1
|
8.39
|
0.61
|
|
Level 11
|
9
|
1.84
|
45.5
|
2.0
|
4.1
|
2.76
|
0.11
|
Weighted averages for samples from
the Santo Domingo body and released previously as indicated in text.
The primary
objective of the 2015 exploration program at level 9 and 10 was to audit past
exploration results from over five hundred samples taken in 2014 by an
independent third-party. The audit sampling included taking twenty-five
duplicate samples of the 2014 program.
The sample
audit consisted of ten samples from level 9 and fifteen samples from level 10.
The ten samples from level 9 gave a weighted average of 246 g/t Ag, 4.3% Pb and
4.3% Zn over an average sample width of 1.12 meters, while those taken by the
independent third party yielded averages of 290 g/t Ag, 5.46% Pb and 3.45% Zn
for the corresponding samples. The fifteen samples from level 10 yielded 78 g/t
Ag, 3.3% Pb and 4.1% Zn over an average sample width of 1.16 meters, while
those taken by the independent third party yielded 187 g/t Ag, 3.44% Pb and
4.31% Zn. The Company does not have laboratory certificates or analytical
methods for the third party samples.
The 2015
underground exploration program also consisted of thirteen channel samples
taken on level 6 and 11 of the mine. Three samples from level 6 gave a weighted
average of 733 g/t Ag, 1.12% Pb and 0.53% Zn over an average sample width of
1.53 meters, while a sample taken from a stockpile located on level 6 yielded
376 g/t Ag, 0.75% Pb and 1.66% Zn. The nine samples from level 11 yielded 45.5
g/t Ag, 2.02% Pb and 4.10% Zn over an average sample width of 1.84 meters.
The Santo
Domingo body 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 Jun13, 2016) where underground exploration and development has
begun. 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 in
consideration.
Mineralization
in the 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.
Efforts are
underway to determine the volume and grades of remaining sulfide material as
part of a NI 43-101 resource calculation planned by the end of the year.
Composite
level map of the Potosi Mine showing areas projected for exploration.
The workings discussed in this press
release are shown on a composite projection in different colors for each level,
and include the main adit and 0 level tunnel, Potosi shafts No. 3 and No. 1,
and the stopes on levels 2-4 (Tunel body), 6 and 9-10 (Santo Domingo or Main
Silicate body).
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 #3 shaft (Tunel body) and levels 6 and 9-11 in the area of the Potosi #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 recently filed on SEDAR a National Instrument 43-101 report with respect to
the initial mine levels 2, 3 and 4 of the Potosi silver mine. The report, prepared by Dr. Craig Gibson,
does 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, consisting of 1.4 to 3 kg of material, was placed in
labelled plastic bags that 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 except zinc by the
ME-OG62 method for higher grade samples.
Zinc was analyzed by the Zn-VOL50 potentiometric titration method using
a 4 acid digestion. For these initial
high grade samples, only blanks were used as internal control samples, and the
laboratory applies strict quality control procedures. ALS Chemex is part of ALS Global, an
internationally recognized analytical laboratory.
About
Cyprium Mining Corporation
For
further information, please contact:
Alain
Lambert, Chairman and C.E.O.
E-mail: alambert@cypriummining.com Phone: + 1 514 219 7988 or + 52 1 614 253 5803
E-mail: alambert@cypriummining.com Phone: + 1 514 219 7988 or + 52 1 614 253 5803
Ron
Keenan, C.O.O.
800 René
Lévesque West Paseo
Bolivar 303
Suite 425 Centro
Historico
H3B 1X9, Canada TSX-V: CUG and CUG.DB Mexico
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, 640pp.
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.
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