Friday August 21, 12:26 pm Eastern Time
Company Press Release
Grand Central Silver Mines Inc. Announces Strategic Alliance
with China Machine-Building and Additional Mineral Property
Acquisitions
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Aug. 21, 1998--Grand Central Silver Mines Inc. (NASDAQ:GSLM - news) Friday announced that it has entered a strategic alliance with China Machine-Building International Corp. (CMIC) based in Beijing to jointly develop mineral properties of mutual interest in North and South America.
China-Machine Building has pledged its technical support and is sending a technical team within the next 30 days to assist the company in evaluating a producing zinc/lead/silver mine located near Zimapan, Hidalgo, Mexico. An option to acquire 50% of the mine was granted to Grand Central by San Miguel Mining Corp. in March, 1998.
The owners of the mine are proposing a sale of 50% of the mine in return for providing expertise and funding to expand production from the current 500 tons per day to 1,000 tons per day. Grand Central is conducting due diligence of the operation and is evaluating the capital requirements necessary to accomplish the proposed expansion.
CMIC will assist in preparing a bankable feasibility study if warranted, and will assist in obtaining financing for this or other mining projects through Chinese financial institutions. In return for their assistance, CMIC or its associates will be granted a combination of minority working interests in the projects, production royalties, and/or equity in Grand Central.
Grand Central is also pleased to announce that it has acquired mineral rights on 65 patented mining claims in Teller County, Colo., near the town of Cripple Creek. Some of the claims are located within 200 feet of the Cresson Gold Project. The Cresson Mine is an open-pit gold mine operated by Cripple Creek & Victor Gold Mining Co.
The company has also acquired four patented mining claims located near the town of Chloride, Ariz., and which constitute the historic Tennessee Mine. The Tennessee is a lead/zinc/silver mine which operated from 1904 through 1943 and produced in excess of 1.5 million ounces of silver, 42,000 ounces of gold, and substantial lead and zinc.
The mine was closed largely due to wartime labor shortages and the previous operators continued to carry substantial reserves at the time of closure. The reported width of the veins and continuity along strike leads Grand Central to believe that additional reserves can be developed at depth in the mine.
Grand Central Silver Mines Inc. is a U.S. based company focused on the exploration and development of silver and base metal resources in the United States and Mexico.
Contact:
Grand Central Silver Mines Inc., Coeur d'Alene
David Nahmias, 800/361-6914 |
