Thursday May 28, 6:02 am Eastern Time
Company Press Release
Major Silver Zone Revealed by Analysis of Data acquired from Penoles
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--May 28, 1998--Grand Central Silver Mines Inc. (NASDAQ:GSLM - news) Thursday announced that an analysis of data acquired from Servicios
Industriales Penoles, S.A. de C.V. (NASDAQ:IPOAF - news) indicates a major silver zone is present at the Sierra Mojada District, Coahuila, Mexico.
Grand Central has a 35% participating joint venture interest in the district.
The data was acquired by joint venture partner Metalline Mining company (OTC BB:MMGG - news) and includes over 50 geologic maps, reports, and drill hole data. The data was generated by
Penoles' operation in the district from the 1880's until the 1940's, and from exploration programs in the district conducted after mining operations were suspended.
The database contains 2171 diamond drill holes that were drilled over a period from 1930 through 1953. The holes are all underground diamond drill holes that were drilled from mines within an
area of about 5 kilometers by 2 kilometers. To date, 871 of the 2171 holes have been entered into Gemcom mine modeling software for analysis, modeling and reserve calculation.
These 871 holes define an east-west trend of silver-copper mineralization over 3000 meters long by 500 meters wide. Three separate silver deposits are outlined in this trend.
First, in the Once and Vulcano mines, in the west end of the district, 297 holes test sedimentary disseminated silver-copper mineralization in limestone and sandstone beds that strike near east-west
and dip at low angles to the north and plunge at low angles to the west. The holes test a volume of ground 300 meters in an east-west direction by 150 meters in a north-south direction by 20 meters
thick.
Second, in the Encantada mine, 3000 meters to the east, 186 holes were drilled in a volume of ground 220 meters east-west by 140 meters north-south and 30 meters thick. Silver-copper
mineralization is disseminated in limestone beds that strike near east-west, are near horizontal and plunge at low angle to the east.
Third, in the San Salvador mine, 500 meters west of the Encantada mine, 64 holes test the same type of disseminated mineralization in limestone beds 30 meters thick, for 120 meters east-west and
60 meters north-south. Mineralization in all three deposits is open in all directions including depth along the 3000 meter trend and similar mineralization is known to occur east and west of the trend.
Project geologists have identified this same type of silver-copper mineralization in limestone and sandstone on mine dumps 1500 meters west of the Once and Vulcano Mines and 500 meters to the
east of the San Salvador Mine. These observations demonstrate that this type of mineralization extends for at least 5000 meters in an east-west direction.
The 871 drill holes were routinely sampled at 1.5 meter intervals and assayed for silver. The holes contain 1336 interval samples with values greater than 100 grams silver per ton and have a
weighted average of 527 grams (17 ounces) silver per ton (Troy Ounce = 31.1 grams). Only 7% of the samples have copper assays, these range from 0.1% to 5.6% with a weighted average of
0.98%.
Drilling in all three deposits showed fairly uniform silver mineralization. The total tonnage penetrated by drilling in the three deposits is approximately 5,100,000 tons. The deposits are flat-lying,
near-surface, and amenable to high-volume underground mining methods. Based upon the grades established by the Penoles sample data, the three deposits are indicated to contain in excess of 80
million ounces of silver.
Furthermore, if mineralization proves to extend throughout and beyond the three known areas, the overall identified trend could prove to hold a much larger silver resource.
The joint venture is continuing with its evaluation of the Penoles data and its ongoing work program at Sierra Mojada which will be expanded to expedite confirmation drilling of the three deposits
and further exploration drilling along the outlined trend.
In other news, the company is pleased to announce that it has acquired a controlling interest in and has assumed the management of Summit Silver Mines Inc. (OTC BB:SUSV - news). The
company acquired the interest from the former President of Summit, Peter Laczay.
Summit's assets include 203 mining claims in the Battle Mountain Gold Trend, Eureka County, Nevada, which are currently leased to BHP Minerals (NYSE:BHP - news) and are being actively
explored. Summit also controls the Kimberly Mine near Riggins, Idaho, which has an indicated gold resource of about 60,000 ounces of gold, and 30 claims in the Mineral Hill District, Eureka
County, Nevada, which are being explored for silver.
Grand Central Silver Mines is a U.S. based exploration and development company based in Coeur d'Alene and focused on silver and base metals in the United States and Mexico. For more
information please contact John Ryan at 208/769-7340 or David Nahmias at 800/361-6914.
Contact:
Grand Central Silver Mines Inc., Coeur d'Alene
John Ryan 208/769-7340
or
David Nahmias 800/361-6914 |
