BURLINGTON, ON, Feb. 9, 2012 /CNW/ - Tim D. Towers Reports :
Silver Shield has made strides in its quest to become a producer and we offer an update on our activities in recent months.
LA CUMBRE GOLD/SILVER MINE
The La Cumbre property consists of 3 concessions totalling 7,000 ha. and located in Guerrero State. It covers an area of ~4.5 km. wide x 15.5 km. in strike length.
The former producing La Cumbre Gold/Silver Mine has been one of the main focuses of the Company in recent months. The mine has had an historical NON 43-101 resource compiled by the Mexican Government of 16,856 tonnes @3.57 g/t Au, 505.5 g/t Ag and 0.2 % Cu over 1.51m width to the 50 m level. The mine shaft is accessible to 50 metres with some levels partially developed. A 17 hole diamond drill program by Silver Shield returned bonanza values of silver, gold and copper not only confirming the historical resource model but also locating multiple new veins and extending the resource model to depth. The company has also constructed modern work quarters at the site.
For 2012 the company has planned an initial 300 metre development mining plan from the 50 metre adit level and has arranged for a local Mexican contract miner to be engaged. It is planned to remove ~3,000 tonnes of material for processing and metallurgical studies. However before the mining can be started a mining permit and explosive permit must be obtained. The company is in the process of garnering these documents. It is expected the necessary permits will be obtained and work will commence in three to four months. A contract custom mill has previously agreed to mill all material from the mine at a reasonable price.
Other work planned for this year include diamond drilling and follow-up prospecting, mapping and sampling of the numerous soil anomalies (Au, Ag, Cu, Pb, Zn) on the concessions.
Silver Shield Resources has acquired by denouncing the Temixco concession in the state of Guerrero, Mexico. The concession totals 1,058 ha in size.
The concession hosts from 350,000 to 500,000 tonnes of Tailings along with 3 old mines. The ore for the tailings came from a massive sulfide deposit located ~5 km to the east and was last worked in 1943.
SSR has only performed preliminary work at this stage to evaluate the potential of the tailings. Four samples taken by the company as part of its due diligence to substantiate previously reported assays returned the following average grades:
|AVERAGE GRADE||RANGE OF ASSAYS||VALUE AT TODAYS PRICES|
|Au- 1.007 g/t||0.399- 1.508 g/t||Au @ $1,730/oz = $50.46/gm $ 50.81|
|Ag- 145.3 g/t||76.2- 224 g/t||Ag @ $33.50/oz = $0.98/gm $142.39|
|Cu- 0.074%||0.029- 0.189%||Cu @ $3.85/lb. $ 6.27|
|Pb- 5.32% (using 4%avg.)||3.25- 8.89%||Pb @ $0.97/lb $ 85.36|
|Zn- 0.49%||0.363- 0.672%||Zn @ $0.95/lb $ 10.24|
|Total Value/ Tonne|| $295.07
The old mines, hosted within Tertiary age rhyodacite and rhyodacite tuff, are located ~3 km. to the northwest of the tailings area. Mineralization is located in veins and consists of gold, silver and copper. No work has been performed by the company at this time on the old mines. It is not known how many tonnes or the grade of ore that was removed by previous owners.
Work planned for this year includes metallurgical studies, environmental study, and a mill designed, procured and erected with production by year end of 200 tonnes/day.
Welsh Silver Mine Elk Lake Ontario
The company has been working with Mr. Brian Hester to assimilate all data in the area of the Welsh Silver Mine both current and historical. The reason for this exercise is the preparation of the first complete and comprehensive report on the Welsh Mine and the surrounding area adjacent to it. The company has been unwavering in its belief of the economic feasibility of this area. The report currently being completed we believe will show the structures, mineralized zones and past historical work and mining to aid in Silver Shield's 2012 development plan for the Welsh Silver Mine . With $33 USD silver we believe the mine can be again the "Silver Gem" of Northeastern Ontario in 2012.
Lost Dog Gold Property Timmins Ontario
The Lost Dog Property, in close proximity to the Lakeshore Gold Timmins West Gold Mine, has undergone significant geophysics by the company. We are extremely pleased with the results. It appears from the IP and Mag work done that a limb of the Porcupine Destour Fault could be traversing the centre of the property. Follow up work on these readings and detailed surface sampling will be performed this summer and fall to plan for locating drill sites on the property.
Other Timmins Properties
The company has extended the agreement on the Ogden Property in Ogden Township in close proximity to Explor's (EXS-TSXV) recently announced high grade gold findings. The extension till December 31, 2012 allows the company to perform additional surface work this year to determine the feasibility of a small drill program later in the fall.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined on the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Company Management, which takes full responsibility for content, prepared this news release. In order to proceed fully with the Company's exploration and acquisition plans, additional funding may be necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.
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