Exploration program planned for La Republica silver property
Republica News Release
Sierra Nevada Gold Ltd
Shares issued 16,919,193
Tue 10 Feb 98
Ms Bonnie Lee reports
Plans for the 1998 exploration program on the La Republica high-grade silver property have been outlined. Past production from this mine totalled approximately four million ounces of silver averaging almost 100 ounces per ton. Assays in the mine reportedly ran as high as 1500 ounces per ton. The strong vein structure is a contact between an andesite hanging wall and a rhyolite intrusive footwall. Two contiguous mineral claims cover a strike length of 1.5km with past mining limited to one ore shoot. No modern
exploration program has ever been completed, making this a near-virgin property.
A sampling and drilling program will begin in February. Based on extensive historical data, the first drilling will target a block between the 300 ft and 400 ft levels in the Main zone. According to old data, a block of developed ore averaging 175 opt silver was left unmined when problems encountered because of the Mexican revolution forced the mine's closure in 1912. Flooding of the mine and poorly financed operations in subsequent years prevented operators from reopening the old workings below the 300 ft level. If this block remains, this one small section of the vein could
contain three million ounces of silver. Deeper drilling will determine if the high-grade values will continue below the 400 ft level as indicated.
Five hundred feet to the north of the Main zone, surface sampling completed by Sierra Nevada Gold in November returned values of 855 grams (27.5 opt) over a seven foot width. The area of sampling is 150 ft above the creek level and corresponds to surface values in the main zone at that elevation. Management believes that this may well be another ore shoot that will increase in grade below the level of oxidation. Old surface workings will be reopened and sampled and then a series of short holes will be drilled under this Northern zone. Previous mining in t his area was limited due to
a cut-off grade of 50 opt.
La Republica is due west of Manhattan Mineral's Moris mine and southwest of Sierra Nevada Gold's high-grade copper/gold property, the Promontorio, near the border of the states of Chihuahua and Sonora. Sierra Nevada,through its Mexican subsidiary, can purchase a 100% interest in the property for US$200,000 and a 4% nsr.
Given the strong structure width (averaging seven to 15 ft) and strike length, geologically the property could contain as much as 50 million ounces of silver. Recent interest and increasing silver prices makes this an exciting target and Sierra Nevada Gold is anxious to begin its program which will include 2,000m of drilling if financing is obtained. |
