Stockwatch News Releases
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War Eagle Mining Company Inc WEM
Shares issued 15,953,924 Aug 19 close $0.63
Wed 20 Aug 97 Delay Trading
Effective at 9:08 am, August 20 1997, trading was delayed, pending clarification of market activity.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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Mexican property to be acquired
War Eagle Mining Company Inc WEM
Shares issued 15,953,924 Aug 19 close $0.63
Wed 20 Aug 97 News Release
Mr Tim Brock reports
The company has reached an agreement to purchase a 100% property interest in the Promontorios project, subject to minor royalties, for a total purchase price of US$850,000, payable over four years with an initial payment of $75,000 in the first year and $75,000 in the second year. The 4,400 acre property is approximately 50 miles northwest of War Eagle's La Fortuna project. The option to purchase agreement is with a small Mexican mining company which in turn has reached agreement to settle an outstanding
loan with Fomento Minero, a Mexican government mining agency.
War Eagle has taken 95 rock-chip samples on a grid that defined a mineralized zone 800m by 400m which is still open ended to the northwest. The chip samples assayed an average grade of 14% lead, 20.1 oz/t silver, and 0.02 oz/t gold. Low grade zinc and copper values were also reported. Ten check assays have confirmed the grades as reported above. The Mexican company processed 46,000 tons of ore with a 200 ton per day flotation plant for a net profit in 1988 and 1989. Production was terminated in 1990 as a result of onerous interest rates and loan repayment terms.
Having sampled the tailings dam and knowing the recoveries of silver and gold that the original operators reported, run-of-mine grades for the previous tons processed have been calculated as 10% lead, 1.6 oz/t silver and 0.045 oz/t gold. Assuming a 50% smelter charge for lead and 90% recovery for gold and silver, gross recoveries were US$61 per ton at current prices. The prospect has the potential for 100-plus million tons as an open-pit mine.
Mineralization is a massive sulphide consisting of visible coarse pyrite and galena. The prospect is a volcanic collapse breccia formed by uplift and collapse of volcanic rocks, with subsequent fracturing and flooding by mineral-bearing hydrothermal fluids.
War Eagle will complete a ground geophysical survey to select diamond drill hole locations.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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