NEWS RELEASE:
Friday February 20, 5:15 am Eastern Time
Company Press Release
Grand Central Silver Mines Announces Acquisition Of
Joint Venture Interest In Silver Property In Mexico,
Drill Results At OK Project And Management Changes
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Feb. 20, 1998--Grand Central Silver Mines
(NASDAQ: GSLM - news) announced today that the company has acquired a 35% working
interest in a joint venture with Metalline Mining Co. (OTC BB:MMGG - news) for exploration
and development of the Sierra Mojada District, Coahuila, Mexico. The interest was purchased
from Royal Silver Mines (OTC BB:RSMI - news) for 735,000 common shares and a note for
$350,000.
The joint-venture will control approximately 16,500 acres in the heart of the historic Sierra
Mojada mining district. The district was discovered in 1879 and has produced high-grade
direct-shipped silver, lead, zinc, and copper ore continuously to the present. The most productive
period was from discovery until the late 1930's. Grades during the 1920's were in the range of
20% lead and 16 ounces per ton (opt) silver for the lead-silver ores; 1 to 3% copper and 22 opt
for the copper-silver ores, and 16 to 32 opt for the primary silver ore. It is estimated that a total
of over 10 million tons of this direct-shipped ore have been produced yielding in excess of 250
million ounces of silver and a very large quantity of base metals.
The deposits at Sierra Mojada are karst-controlled manto and chimney orebodies and stratiform
disseminated sulfide orebodies. The manto and chimney deposits occur in karsted limestone and
are composed of lead, zinc, silver oxides with remnant lead, zinc, silver sulfides. The stratiform
deposits occur as bedded, disseminated copper, lead, zinc, silver sulfides in unaltered limestone
and dolomite. The sulfides exhibit sedimentary textures, such as deposition on suture planes and
dissemination in fossiliferous limestone.
Sierra Mojada is a major mineral system that has had only its high-grade ore bodies exploited.
Work to date suggests that large tonnages of mill grade silver, lead, zinc, and copper ore remain
in the old mines and in unexplored areas adjacent to the main trend of the known deposits.
Results from sampling and inspection of existing workings along with compilation of recently
acquired maps and cross-sections generated by historic operators indicates that very large
mineralized resources can be developed within and adjacent to the existing workings and in
unexplored areas below the old mines.
Almost 400 samples taken from mine dumps, exploration tunnel and shaft dumps, and
underground workings have been collected which average 5.6 opt silver, 0.37% copper, 1.82%
lead, and 3.62% zinc. Of these, 228 samples were above an underground bulk mineable grade
and averaged 8.5 opt silver, 0.54% copper, 2.92% lead, and 5.84% zinc. The Sierra Mojada
Joint Venture is currently conducting a $1 million mapping, sampling, and drilling program
focused on developing silver reserves.
In other news, the company is pleased to announce that its OK Copper Joint Venture partner,
Nevada Star Resources (NEV:VSE) announced on February 17th that is has had extremely
successful drilling results on copper properties forming a part of the OK Copper Joint Venture
near Milford, Utah. Core hole HT98-1 intersected a 115 foot thick zone which graded 3.21%
copper. This ore is contained in a gamet magnetite skam. A 33 foot thick zone of
gamet-wollastonite skarn located directly above the gamet-magnetite skarn assayed 0.90%
copper.
The OK Joint Venture encompasses properties hosting in excess of 95 million pounds of copper
reserves and is open for expansion. The Joint Venture is currently conducting a final feasibility
study of the project and intends to construct an SX/EW copper extraction plant to tread the oxide
ores. The current drilling program is a check hole program and is part of the final feasibility
study. The Joint Venture is pleased that results so far have exceeded the expectations of the
project staff. Rick Havenstrite, who has extensive experience in construction and operation of
SE/EW plants is the project manager.
In other news, the Company recently elected three new Directors at its 1998 annual meeting on
January 30th. These were John Ryan, Mike Mason, and Howard Crosby. Three incumbent
directors re-elected to the board were Spenst Hansen, David Morgan, and Orson Mabey III. At
the annual board meeting on February 5th, the Board elected John Ryan as president of the
Company. The Company plans to finalize re-location of its headquarters to Coeur d'Alene, Idaho
by March 1st.
Ryan is a professional mining engineer with a BS degree in Mining Engineering from the
University of Idaho. Ryan also holds a law degree from Boston College Law School. He has
experience in the mining and securities industries. Michael Mason is the managing partner of
Mineral Services, LLC, based in Garden City, NY, and has previously held senior management
positions in metals and commodities trading for more than 15 years. He holds an MBA degree in
finance and a BS degree in metallurgical engineering. Howard Crosby is a seasoned business
executive with more than 20 years experience in marketing and public relations, much of it
related to the metals mining industry. He holds a BA degree from the University of Idaho.
Grand Central Silver Mines, is a U.S. based exploration and development company focused on
silver and base metals in Mexico and the U.S. For further information, please contact John Ryan
at 208/769-7340 or David Nahmias at 800/361-6914. |
