#CYPRIUMMINING (#TSX: $CUG.V) ANNOUNCES 43-101 TECHNICAL REPORT ON THE #POTOSI
#SILVER #MINE; @CypriumMining
Montreal,
Quebec - August 16, 2016 - (Investorideas.com Newswire)
Cyprium
Mining Corporation (“Cyprium” or the
“Company”) (TSX-V:
CUG)
is pleased to report that it has filed a technical report prepared in
accordance with National Instrument 43-101 on the Potosi silver mine located in
the historic mining district of Santa Eulalia, Mexico (the “Report“). The Report dated May 29, 2016
is titled “Geology and Exploration of the Potosi Mine, Municipality of Aquiles
Serdan, Chihuahua state, Mexico” and was prepared P.C. Gibson, Ph. D., CPG of
Chihuahua, Chihuahua, Mexico. The Report which does not contain a resource
estimate, is available for review on both SEDAR (www.sedar.com ) and the
Company’s website (www.cypriummining.com).
Mr. Alain Lambert, Chairman and CEO of Cyprium
commented: “The Report focuses on the “Tunel” mineralized body at levels 1 to 4
of the mine which are accessible by the newly rehabilitated Potosi Shaft No. 3.
The Report also contains valuable information on the historic Santa Eulalia
mining district where the largest carbonate replacement deposit (CRD) in Mexico
is located.” Mr. Lambert added: “We believe that the larger Santo Domingo
mineralized body located at level 9, 10 and 11 of the mine – also known as the
Main Silicate Body – also has good exploitation potential. The evaluation and
preparations for exploiting the Santo Domingo body as well as the preparation
of a 43-101 resource calculation by the end of the year will now assume top
priority.”
Over
the last three weeks the Company proceeded with the first phase of production
which consisted in the extraction of broken mineralized material left in stopes
on levels 1 and 2 of the mine by past mining activities. The Company is now
awaiting to receive an explosives permit to begin blasting on level 2 and 4.
The Company is also evaluating other areas for blasting on level 3 (1).
The Company has drilled over 144 holes using jacklegs in anticipation of
receiving the explosives permit.
All
mineralized material extracted from the mine will be sent to the Aldama
flotation plant located 42 kilometers from the Potosi mine. The Aldama plant
has a capacity of one-hundred metric tons per day and the Company has the
exclusive right to use it under an agreement which expires in May 2019. The
lead and zinc concentrates produced at the plant will be shipped to Trafigura
Mexico under the terms of a commercial agreement with Trafigura. The Company is
responsible for the supervision of all metallurgic processes, including
quantitative chemical analysis, assaying of samples, determining feed grades
and the sale of concentrates.
Pictures and videos of production
activities can be found at the following link:
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 over 500 million ounces of silver and
substantial amounts of lead and zinc mined. The Santa Eulalia district is a
Carbonate Replacement Deposit (CRD) and is the largest of its type known in
Mexico. Production and reserves for the district have been estimated to be
about 50 million metric tons (3) with grades of 125-350 g/t Ag, 2-8%
Pb and 3-12% Zn (3) (4).
The
Santa Eulalia district covers approximately forty-eight square kilometers and
is divided into three areas, the West Camp, the Middle Camp and the East Camp.
The Potosi silver mine is located in the West Camp, which has produced most of
the district’s ores with the Potosi silver mine being one of the two principal
producers.
Based on the geology, past mining activity and the
exploration work completed by the Company to date, 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 along the margins old
stopes and adjacent areas. Work is
continuing to evaluate the potential for defining resources throughout the
mine.
Geological Setting, Deposit Type and
Mineralization
Mineralization
in the Santa Eulalia district is characterized by massive limestone replacement
sulfides, dominantly pyrrhotite, sphalerite, galena and pyrite that occur as
horizontal mantos and steep chimneys.
These sulfide 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 reached to over 850 meters depth
below the surface on 23 levels.
Production in the West Camp diminished gradually through the late 80’s,
despite the discovery of new mineralization, and the camp has been largely
dormant since 1991. Currently the only
significant production is from the East Camp.
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, generally consisting of from
1.0 to more than 6.0 kg of material, is placed in labelled plastic bags that
are sealed with ties at the collection site. Cyprium maintains a quality
control program. Control samples consisting of standards and blanks are added
to the sample stream prior to delivery.
All samples are then transported from the mine in Company vehicles and
stored at the Company’s or contractors surface facilities or are taken directly
to ALS Chemex de Mexico, located in Chihuahua City by personnel of the
contractor. Samples are analyzed in
Vancouver for the reported metals by the Me-OG62 method for higher grade samples. ALS Chemex is part of ALS Global, an
internationally recognized analytical laboratory.
About Cyprium Mining Corporation
For further information, please
contact:
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) Please read important
disclaimer in bold below.
(2) P. Megaw, pers. Comm.
(3) Megaw, P.K.M., 1990,
Geology and geochemistry of the Santa Eulalia mining district, Chihuahua,
Mexico, unpublished PhD dissertation, University of Arizona, 461 pp.
(4) 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. It must be understood that any such production would be
from unmeasured mineralized material.
The Company further advises that since its production decision was not
based on a feasibility study of mineral reserves demonstrating economic and
technical viability there may be an increased uncertainty of achieving any
particular level of recovery of minerals or the cost of such recovery,
including increased risks associated with developing a commercially mineable
deposit. Historically, such projects have a much higher risk of economic and
technical failure. These risks, among others, include areas that are analysed
in more detail in a feasibility study, such as applying economic analysis to
resources and reserves, more detailed metallurgy and a number of specialized
studies in areas such as mining and recovery methods, market analysis, and
environmental and community impacts. There is no guarantee that production will
proceed as anticipated or at all or that anticipated production costs will be
achieved. Failure of production to proceed as planned would have a material
adverse impact on the Company's ability to generate revenue and cash flow to
fund operations. Failure to achieve the anticipated production costs would have
a material adverse impact on the Company's cash flow and future profitability.
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