Santo Domingo mine to be acquired
Columbia Metals Corp Ltd COML
Shares issued 15,821,679 Mar 9 close $0.40
Tue 10 Mar 98 News Release
Mr Carl Di Placido reports
Columbia, through its wholly owned Mexican subsidiary Minera Columbia de
Mexico S.A. de C.V., has signed an option agreement to purchase 100% of the
Santo Domingo mine for cash payments over a three year period. The Santo
Domingo is in the world famous Alamos silver-zinc mining district of
south-eastern Sonora, Mexico 7km northwest of Alamos, Mexico.
The mine is on the main silver-lead-zinc structure that made the Alamos
area a world leading silver producer during the 1800s. The Promontorio
silver mine, 5km southwest, was a continuous producer for over 150 years
with a mint production record of 46,000,000 oz of refined silver. The
present workings at the Santo Domingo mine consists of a 350 ft deep shaft
of which the upper portion has been glory holed. A report by Ing. Francisco
G. Quiroga dating back to the 1930s states that previous operators
estimated 150,000 tons of ore grading 24 oz per ton silver with a 20%
combined grade of lead-zinc and 1% copper above the 350 ft level was left
unmined. Documentation from the Geological Mining Monograph of the State of
Sonora, published in 1994 confirms vein thickness of 2.50m a strike length
of 450m and silver grades of 530 g/t. The average width of the zone at the
350 ft level is reported to average 20 ft wide.
The ore zone below the 350 ft level has yet to be explored. The adjacent
Quintera mine 2 miles to the south as well as others along strike were
mined to depths of more than 1600 ft until 1910 when the Mexican Revolution
shut down all mining operations in the area. This suggests that the Santo
Domingo ore deposit could continue to similar depths.
The company will commence a diamond drill program in the immediate future
to prove the reported 150,000 tons, increase reserves and test the depth of
the system.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
P.S. Let me know if any of you will be at the conference, I would be interested in meeting with you as I work a few blocks away.
Regards,
Simon |
