Increased Resource Model Requires Re-evaluation of Sierra Mojada Project Feasibility Study.
29 July 2008 - 11:00PM
PR Newswire (US)
COEUR D'ALENE, Idaho, July 29 /PRNewswire-FirstCall/ -- Metalline
Mining Company is pleased to announce that a new resource model has
been completed on the Sierra Mojada, Coahuila, Mexico Oxide Zinc
mineralization. The new model was completed by world-recognized
Pincock, Allen, and Holt, and more than doubles the amount of zinc
present in the deposit. The current model incorporates new drilling
results and a complete suite of silver analyses that were not
available when the previous model was generated. The increase in
the size and zinc content of the deposit, plus the addition of a
potential by-product credit for silver associated with the Oxide
Zinc mineralization, requires that the Company take a fresh look at
the optimum mine size, mining methods, and other economic and
engineering factors. Open pit mining is possibly effective on a
deposit of this size and geometry. Open pit mining would remove the
production rate constraints that are inherent in the underground
mining scenario that is currently being evaluated. A first pass
evaluation of open pit mining of the new resource model indicates
that mining and processing rates might be as much as 5 times
greater than those currently being considered. This would result in
significant economies of scale and may allow market opportunities
that are not available with a smaller underground operation.
Preliminary economic evaluation of open pit mining suggests that it
would be much more profitable. Silver Polymetallic ores provided
much of the historic production in the Sierra Mojada area. The
company has been actively evaluating these zones and has issued a
number of press releases and other public statements concerning
them. The Silver Polymetallic mineralization lies adjacent to the
Oxide Zinc mineralization on the north side of the east-west Sierra
Mojada Fault. In an open pit scenario, this mineralization would be
mined during stripping to access the Oxide Zinc mineralization. We
do not have enough drill data yet, and in the right places, to
create a comprehensive resource model for this mineralization.
Current drilling, with 5 drills, is primarily directed at infilling
and defining the Silver Polymetallic mineralization in order to
bring the data to the quality required for a resource model. The
Silver Polymetallic mineralization is predominantly sulfide in
nature and would require a different processing plant to recover
the contained metals. The Company needs to gain a complete
understanding of the size, grade and metallurgical character of
this potentially large silver-rich mineralization in order to
understand the impact on the economics of mining the Oxide Zinc
mineralization by open pit. If the Silver Polymetallic
mineralization can be exploited in the course of developing the
Oxide Zinc mineralization, there is potentially an additional, very
positive, economic impact on the overall project. Accordingly, the
Company is announcing that it is suspending the underground mine
plan and concentrator portions of the feasibility study to evaluate
a much larger scale operation in order to exploit both the silver-
rich mineralization and the now much larger Oxide Zinc, silver
mineralization. Since underground mining may not be conducted, the
planned test mining program is being suspended until the open pit
possibility is determined. Forward-Looking Statements This news
release contains forward-looking statements regarding future events
and Metalline's future results that are subject to the safe harbors
created under the Securities Act of 1933 (the "Securities Act") and
the Securities Exchange Act of 1934 (the "Exchange Act"). These
statements are based on current expectations, estimates, forecasts,
and projections about the industry in which Metalline operates and
the beliefs and assumptions of Metalline's management. Words such
as "expects," "anticipates," "targets," "goals," "projects,"
"intends," "plans," "believes," "seeks," "estimates," "continues,"
"may," variations of such words, and similar expressions, are
intended to identify such forward-looking statements. In addition,
any statements that refer to projections of Metalline's future
financial performance, Metalline's anticipated growth and
potentials in its business and other characterizations of future
events or circumstances are forward-looking statements. Readers are
cautioned that these forward-looking statements are only
predictions and are subject to risks, uncertainties, and
assumptions that are difficult to predict, including those
identified elsewhere herein and Metalline's Annual Report on Form
10-KSB for the fiscal year ended October 31, 2007 under "Risk
Factors." Therefore, actual results may differ materially and
adversely from those expressed in any forward-looking statements.
Metalline undertakes no obligation to revise or update any
forward-looking statements for any reason. DATASOURCE: Metalline
Mining Company CONTACT: Merlin Bingham of Metalline Mining Company,
+1-208-665-2002 Web site: http://www.metalin.com/
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