www.cypriummining.com
TSX-V: CUG and CUG.DB
MONTREAL, Aug. 16, 2016 /CNW Telbec/ - 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:
https://www.icloud.com/sharedalbum/#B0m53qWtHvrxvL
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
Website: www.cypriummining.com
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.
SOURCE Cyprium Mining Corporation