800 René Lévesque
West
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Paseo Bolivar
303
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Suite 425
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Centro
Historico
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Montréal,
Québec
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www.cypriummining.com
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Chihuahua,
Chihuahua
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H3B 1X9,
Canada
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TSX-V: CUG and
CUG.DB
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Mexico
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MONTREAL, June 13, 2016 /CNW Telbec/ - Cyprium Mining
Corporation ("Cyprium" or the "Company") (TSX-V: CUG
and CUG.DB) is pleased to announce the results from nine
underground samples taken as part of its ongoing exploration
program of the Tunel body of the
Potosi silver mine located in
Santa Eulalia, Mexico. The term
Tunel body refers to the area
accessed by the Potosi No. 3 shaft on levels 1 to 4 of the
Potosi mine.
The seven samples were taken from level 3.5 and yielded average
values of 214 g/t Ag, 7.21% Pb and 6.44 Zn over an average sample
width of 1.18 meters. The Company announced in August 2015 the results from two samples taken
from the same area. These two samples yielded averages of 100 g/t
Ag, 2.79% Pb and 8.43% Zn over 1.45 meters.
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Mining
Area
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Sample
ID
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Sample
Type
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Width
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Ag
g/t
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Pb%
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Zn
%
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Tunel body
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156452
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Channel
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1.50
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261
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9.53
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8.39
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Tunel body
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156453
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Channel
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1.50
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178
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4.11
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3.30
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Tunel body
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156454
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Channel
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1.60
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248
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11.00
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3.42
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Tunel body
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156455
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Channel
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0.60
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597
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9.60
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11.75
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Tunel body
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156456
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Channel
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0.60
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8
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0.15
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0.11
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Tunel body
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156457
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Channel
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0.60
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425
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10.50
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4.37
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Tunel body
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156458
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Channel
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0.70
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35
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0.86
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7.45
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Tunel body
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156459
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Channel
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0.60
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16
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0.45
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0.62
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Tunel body
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156460
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Channel
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0.60
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147
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5.34
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5.71
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Average:
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214
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7.21
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6.44
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The results announced today are part of the first phase of work,
exploration and evaluation of the mineralization on levels 2 to 4
of the Potosi mine near the Potosi
No. 3 shaft, termed the Tunel
body. Access to the area is via the portal of the main tunnel from
the surface on level 0 and various irregular workings that connect
to the lower levels. The Company has recently completed the
rehabilitation the Potosi No. 3 shaft with a winch to facilitate
further exploration in the area using sampling as well as drilling
by long-hole methods. Drilling and blasting using company equipment
is also planned in this area. Cyprium has completed some
preliminary mapping and surveying and compilation of historical
data is in progress.
Mineralization in the area is exposed in shallowly south dipping
mantos in stopes on levels 4 and 3 as well as in steeper chimneys
that possibly connect the mantos. Mapping and sampling is designed
to determine the controls on mineralization to direct future
exploration. The main exposures of mineralization studied to date
are in a large stope on level 4. Most of the mineralization on the
upper levels of the Potosi mine is
oxidized, but local areas with preserved sulfides on the upper
levels such as level 4 were discovered in the last few decades
(1). 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 proximity of the capping series that may have
prevented oxidation. The capping series lies unconformably over the
Cretaceous limestone and was deposited on an eroded surface with
significant relief. The sequence is composed of variable
lithologies consisting of limestone and volcanic conglomerate,
tuff, and locally marl. The unit has been measured at several
hundred meters in thickness, but has been largely eroded over the
Potosi mine property and occurs as
remnants less than about 250 meters in thickness. The unit is
variably propylitized in the Santa Eulalia West Camp where the
Potosi mine is located and the
base of the unit may contain some base metal veins and some
orebodies are localized at the contact with the underlying
carbonate rocks, but it generally is not mineralized.
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 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, 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. 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.
Cyprium maintains a quality control program. Samples are
placed in labeled bags with a sample tag and are delivered directly
to the laboratory, ALS Chemex de Mexico, located in Chihuahua City. Control
samples consisting of standards and blanks are added to the sample
stream prior to delivery. All samples were analyzed in Vancouver for the reported metals by the
Me-OG62 method for higher grade samples. Silver assays were
checked by fire assay with a gravimetric finish. 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, 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.
SOURCE Cyprium Mining Corporation