Cyprium Mining finalizes rehabilitation of shaft #3 of the Potosi Silver Mine
MONTREAL, May 30, 2016 /CNW/ – Cyprium Mining Corporation ("Cyprium" or the "Company") (TSX-V: CUG and CUG.DB) is pleased to announce that it has completed the rehabilitation of shaft #3 of the Company's Potosi silver mine located in the historic Santa Eulaliamining district in northern Mexico. The project, which began in February 2016, consisted in the rehabilitation and improvement of the extraction capability of shaft #3 as well as improvement of infrastructure, security and preparation of prospective mining areas at levels 2 to 4 of the mine. The Company also announces that it has been informed by the TSX Venture Exchange Inc. that its common shares will resume trading on Tuesday May 31st, 2016.
Mr. Alain Lambert, Chairman and CEO of Cyprium commented: "Over the last three months we have replaced almost 1.5 kilometers of railway tracks at level 0 and at level 4. This includes the installation of railway tracks between an existing raise from the level 4 proposed initial mining area to shaft #3 as well as the installation of railway tracks in the level 4 mining area where much of our near-term mining activities will take place. New air and water tubing has been installed and we have rehabilitated existing equipment including two air-loaders and a small electric locomotive. Once we have re-assembled the air compressor which was brought down into the mine last week, we will turn our focus on cleaning up old stopes in level 2, 3 and 4, retrieving existing mineralized material from past mining operations and initiating drilling and blasting."
A video of the shaft #3 in operations can be viewed here: https://www.youtube.com/watch?v=7dHGrUVpeWw
The rehabilitation of shaft #3 will allow materials, services and equipment to be brought into the area around the shaft for near term exploration and mine development. The shaft will also allow for the removal of mineralized material from underground development at levels 2 to 4 of the mine. Shaft #3 has a mechanical daily extraction capability of one hundred tons. It must be understood however that at this time the Company has no resources or reserves at the Potosi mine and any such production would be from unmeasured mineralized material.
Mineralized material extracted through shaft #3 will be processed at the Company's Aldama plant. The Aldama plant is located 42 kilometers from the Potosi mine. Under an agreement which expires in May 2019, the Company has the exclusive right to use theAldama plant which has a capacity of 100 metric tons per day. The Company is responsible for the supervision of all metallurgic processes at the Aldama plant, including quantitative chemical analysis, assaying of samples, determining feed grades and the sale of concentrates.
Work at the Potosi mine in the near term will continue to focus on the area around the # 3 shaft as access is easier and rehabilitation of the hoist is now complete. Exploration using longholes with jacklegs and drifting by drilling and blasting are expected to be used to further explore these mineralized areas.
To date, widely spaced sampling on levels 3-4 in the area of the Potosi #3 shaft and levels 6 and 9-11 in the area of the Potosi #1 shaft 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. As data compilation proceeds, exploration to expand known stopes or to encounter new mineralization, possibly by diamond drilling, will be planned. Work completed by the Company at the Potosi mine has been successful in demonstrating potential for encountering mineralized material by exploration.
Visible mineralization on levels 2 to 4 along with relatively easy access and near term installation of services make this area ideal to focus exploration and development activities. Construction of some underground workings will probably be necessary, but the amount of this work is not known as final survey information is not yet available. Surveying work of the old workings to provide a three dimensional framework for planning and determining the volume of material already extracted is ongoing. The sampling density will also be increased. Some of this work is already in progress in the level 4 stope and will be extended to other visibly mineralized areas surrounding Potosi shaft # 3.
About Cyprium Mining Corporation
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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, results of sampling activities, a feasibility study of this project has not been completed and there is no certainty that the proposed operations will be economically or technically viable.
SOURCE Cyprium Mining Corp