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LA BLANCA PROPERTY STATE OF CHIHUAHUA, MEXICO, DRILLING INDICATES OPEN PIT POTENTIAL

 LA BLANCA PROPERTY STATE OF CHIHUAHUA, MEXICO,
 DRILLING INDICATES OPEN PIT POTENTIAL
 VANCOUVER, British Columbia, March 26 /PRNewswire/ - The following is being released by War Eagle Mining Co.:
 PROPERTY SUMMARY
 More than 6 million tons of ore grade mineralization has been drill indicated in the newly discovered River Zone. At this time the zone is open in three dimensions (strike, width and depth). The arithmetic average of all the fire assay results within the drilled portion of the River Zone is 4.76 ounces per ton silver and 0.013 ounces per ton gold. Using $340 per ounce gold and $4.10 per ounce silver, this gives an average grade per ton of $23.92 (U.S. funds) or therefore a gross value of $143 million. This is a gold equivalent value of 0.07 ounces per ton gold.
 To date, eight drill holes have indicated the River Zone is open in three dimensions. The strike length is more than 660 feet long; more than 300 feet wide; and the zone extends beyond 300 feet in depth. The River Zone is located at the south end of the La Blanca showings. The mineralization occurs in a large stockwork system which indicates the potential for an increase in tonnage is excellent.
 The bottoms of holes 2 and 18 have intersected what appears to be the top of a second zone which has even higher grade. This zone is known as the Lower River Zone and is parallel with and below the River Zone.
 The River Zone strikes approximately East-West and dips steeply to the North. Previous drill hole results from holes 91-5, 6, 7 and 8 demonstrate the existence of several other parallel bands of similar grade mineralization extending up to 1,400 feet to the north and open to the south.
 The potential for a large, low-cost open pit mine has been drill indicated by the phase two program. The company expects to increase drill indicated ore reserves substantially during phase three drilling which will total approximately 10,000 feet and is planned to commence in mid April.
 At this time, the company is estimating the cost of production at approximately $8 per ton. Bench scale laboratory tests has shown that recoveries of 87 percent for both silver and gold are easily achieved by flotation. A microscopic examination showed that the rock type is an easily ground kaolinised rhyolite tuff and that the ore minerals present are argentite and free gold.
 DRILL HOLE RESULTS
 The phase two program totalled 14 reverse circulation drill holes for 5,568 feet drilled. The phase two program included deepening four of the holes drilled in November being holes 5, 8, 11 & 12 and drilling 10 inclined new holes being holes 17 through 26.
 Drill hole locations are summarized as below:
 Hole No. Length Dip Hole No. Length Dip
 Feet Degrees Feet Degrees
 2 250 90 19 5? 60
 5 575 90 20 450 60
 8 575 90 21 403 60
 11 410 90 22 500 60
 12 560 90 23 500 60
 17 490 60 24 370 60
 18 490 60 25 500 60
 26 500 60
 Drill hole results with the River Zone are as follows:
 Hole From To Interval Silver Gold Gross Value
 No. Feet Feet Feet ozs/t ozs/t US $/ton (a)
 11 130 285 155 5.94 0.017 30.13
 12 105 335 230 7.24 0.022 37.16
 520 560 40 5.48 0.020 29.27 (b)
 17 60 490 430 4.07 0.009 19.75
 18 20 155 135 3.21 0.008 15.88
 19 60 405 345 3.21 0.007 15.54
 155 195 40 4.86 0.021 27.07
 230 355 125 3.89 0.012 20.03
 375 405 30 6.08 0.019 31.39
 20 90 440 350 5.71 0.022 30.89 (b)
 21 15 40 25 2.39 0.006 11.84
 75 345 270 4.54 0.013 23.03
 375 405 30 6.28 0.021 32.89 (b)
 22 60 175 115 3.99 0.010 17.30
 220 280 60 3.51 0.010 17.79
 420 440 20 3.44 0.012 18.18
 Drill hole results within the lower River Zone are as follows:
 Hole From To Interval Silver Gold Gross Value
 No. Feet Feet Feet ozs/t ozs/t US $/ton (a)
 2 220 250 30 4.89 0.011 23.79 (b)
 18 460 490 30 7.03 0.027 38.00 (b)
 Drill hole results intersecting of other parallel zones are as follows:
 Hole From To Interval Silver Gold Gross Value
 No. Feet Feet Feet ozs/t ozs/t US $/ton (a)
 5 5 55 50 2.75 0.008 13.99
 90 250 160 2.26 0.005 10.97
 6 125 250 125 3.00 0.009 15.36 (b)
 7 20 80 60 1.62 0.004 8.00
 8 10 250 240 5.24 0.018 27.60
 (a) Gold at U.S. $340 per ounce; Silver at U.S. $4.10 per ounce
 (b) Terminated in ore grade mineralization
 Drill holes 3, 4, 9, 10, 13, 14, 15, and 16 encountered less than two ounces per ton silver and have not been reported. These assay results are because of the previously unknown dip to the mineralized zones.
 COMPARARTIVE PRODUCING MINES
 For comparative use, the following chart indicates the basic economics of similar low cost, low grade silver deposits:
 Mine Name Ore Reserve Gross Value Daily
 Grade Silver US $ per ton Production Rate
 Equivalent ozs/t
 Delamar 3.68 15.09 3,000
 (Nero)
 Equity Silver 5.16 21.15 10,000
 (Placer Dome)
 Real de 3.45 14.14 16,000
 Angeles
 (Placer Dome)
 PROPERTY OWNERSHIP
 The company beneficially owns a 99 percent equity interest in Minera Aquila Canadiense, a Domestic Mexican Company, which in turn owns a 100 percent property interest in two claim blocks covering approximately 1,200 hectares, known as the La Blanca Property. Both claim blocks are burdened with a .8 percent net smelter royalty which terminates after royalty payments of $1.8 million. The main claim block which contains the River Zone and most of the parallel zones is also burdened with annual payments of $6,000 to a total of $250,000 with any balance due within six months of the start of production. The adjoining claim is burdened with an annual payment of $51,000 with an end price of $770,000. Both claims are held in the name of Minera Aguila Canadiense.
 -0- 03/26/92
 /EDITOR'S NOTE: A copy of the War Eagle Mining Co.'s map of the La Blanca Property drill hole locations is available by fax by calling Canada NewsWire Vancouver at 604-669-7764.
 /CONTACT: Andrew Hay of War Eagle Mining Co., 604-684-8177, or in the United States, 800-877-1626/
 (WEM.) CO: War Eagle Mining Company ST: British Columbia IN: MNG SU:


JL -- LA031 -- 2206 03/26/92 20:19 EST
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Date:Mar 26, 1992
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