TSX-V: CUG and CUG.DB
MONTREAL, June 9, 2016 /CNW Telbec/ - Cyprium Mining Corporation ("Cyprium" or the "Company") (TSXV: CUG, CUG.DB) is pleased to announce the results from thirty-five 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 results announced today were all taken in an old stope located at level 4 of the mine and are in addition to results from seven samples announced in August 2015. Those seven samples from level 4 yielded average values of 578 g/t Ag, 4.99% Pb and 2.8% Zn over an average sample width of 1.65 meters, and two samples from level 3 yielded averages of 100 g/t Ag, 2.79% Pb and 8.43% Zn over 1.45 meters. The results from the new thirty-five samples, combined with the seven samples taken in 2015, are all described on the map found through the following link:
For a composite level plan and vertical projection for the Tunel body, Potosi shaft No. 3 area, please press on the following link:
Mr. Alain Lambert, Chairman and C.E.O. of Cyprium stated: "The level 4 stope of the Tunel body of the Potosi silver mine forms part of our initial focus for mine development and extraction of mineralized material through shaft No. 3. Consistent with our business plan to put emphasis on short-term cash generation to fund the systematic development of the mine, our mining activities will start with the richer South Zone A and North Zone." Mr. Lambert concluded: "We are currently finalizing the evaluation work in order to add further areas of mine development and extraction activities within the Tunel body's levels 2 to 4. Our goal is to start extracting mineralized material from at least three different areas when drilling and blasting starts. "
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 (1) with grades of 125-350 g/t Ag, 2-8% Pb and 3-12% Zn (1) (2), 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.
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
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.
About Cyprium Mining Corporation
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).
(1) Megaw, P.K.M., 1990, Geology and geochemistry of the Santa Eulalia mining district, Chihuahua, Mexico, unpublished PhD dissertation, University of Arizona, 461 pp.
(2) 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
For further information: Alain Lambert, Chairman and C.E.O., E-mail: [email protected], Phone: + 1 514 219 7988 or + 52 1 614 253 5803; Ron Keenan, C.O.O., E-mail : [email protected] Phone + 1 514 915 3836, Website: www.cypriummining.com