TSX-V: CUG and CUG.DB
MONTREAL, May 30, 2016 /CNW/ - Cyprium Mining Corporation
("Cyprium" or the "Company") (TSX-V: CUG and CUG.DB)
is pleased to announce that it has completed the rehabilitation of
shaft #3 of the Company's Potosi
silver mine located in the historic Santa
Eulalia mining district in northern Mexico. The project, which began in
February 2016, consisted in the
rehabilitation and improvement of the extraction capability of
shaft #3 as well as improvement of infrastructure, security and
preparation of prospective mining areas at levels 2 to 4 of the
mine. The Company also announces that it has been informed by the
TSX Venture Exchange Inc. that its common shares will resume
trading on Tuesday May
31st, 2016.
Mr. Alain Lambert, Chairman and
CEO of Cyprium commented: "Over the last three months we have
replaced almost 1.5 kilometers of railway tracks at level 0 and at
level 4. This includes the installation of railway tracks between
an existing raise from the level 4 proposed initial mining area to
shaft #3 as well as the installation of railway tracks in the level
4 mining area where much of our near-term mining activities will
take place. New air and water tubing has been installed and we have
rehabilitated existing equipment including two air-loaders and a
small electric locomotive. Once we have re-assembled the air
compressor which was brought down into the mine last week, we will
turn our focus on cleaning up old stopes in level 2, 3 and 4,
retrieving existing mineralized material from past mining
operations and initiating drilling and blasting."
A video of the shaft #3 in operations can be viewed here:
https://www.youtube.com/watch?v=7dHGrUVpeWw
The rehabilitation of shaft #3 will allow materials, services
and equipment to be brought into the area around the shaft for near
term exploration and mine development. The shaft will also allow
for the removal of mineralized material from underground
development at levels 2 to 4 of the mine. Shaft #3 has a mechanical
daily extraction capability of one hundred tons. It must be
understood however that at this time the Company has no resources
or reserves at the Potosi mine and
any such production would be from unmeasured mineralized
material.
Mineralized material extracted through shaft #3 will be
processed at the Company's Aldama
plant. The Aldama plant is located
42 kilometers from the Potosi
mine. Under an agreement which expires in May 2019, the Company has the exclusive right to
use the Aldama plant which has a
capacity of 100 metric tons per day. The Company is responsible for
the supervision of all metallurgic processes at the Aldama plant, including quantitative chemical
analysis, assaying of samples, determining feed grades and the sale
of concentrates.
Work at the Potosi mine in the
near term will continue to focus on the area around the # 3 shaft
as access is easier and rehabilitation of the hoist is now
complete. Exploration using longholes with jacklegs and drifting by
drilling and blasting are expected to be used to further explore
these mineralized areas.
To date, widely spaced sampling on levels 3-4 in the area of the
Potosi #3 shaft and levels 6 and
9-11 in the area of the Potosi #1
shaft has shown that mineralized material of interesting grades is
exposed at the margins old stopes and adjacent areas and this work
will continue in order to evaluate the potential for defining
resources. As data compilation proceeds, exploration to expand
known stopes or to encounter new mineralization, possibly by
diamond drilling, will be planned. Work completed by the Company at
the Potosi mine has been
successful in demonstrating potential for encountering mineralized
material by exploration.
Visible mineralization on levels 2 to 4 along with relatively
easy access and near term installation of services make this area
ideal to focus exploration and development activities. Construction
of some underground workings will probably be necessary, but the
amount of this work is not known as final survey information is not
yet available. Surveying work of the old workings to provide a
three dimensional framework for planning and determining the volume
of material already extracted is ongoing. The sampling density will
also be increased. Some of this work is already in progress in the
level 4 stope and will be extended to other visibly mineralized
areas surrounding Potosi shaft #
3.
About Cyprium Mining Corporation
For the description of Cyprium Mining's business and company
Forward Looking Statement Disclaimer please visit our website at:
www.cypriummining.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release contains "forward-looking information" (within
the meaning of applicable Canadian securities laws) and "forward
-looking statements" (within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995). Such statements or
information are identified with words such as "anticipate",
"believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words
suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's
anticipated plans for developments of the Company and its mining
projects.
Such forward-looking information or statements are based on a
number of risks, uncertainties and assumptions which may cause
actual results or other expectations to differ materially from
those anticipated and which may prove to be incorrect. Assumptions
have been made regarding, among other things, management's
expectations regarding future growth, plans for and completion of
projects by Company's third party relationships, availability of
capital, and the necessity to incur capital and other expenditures.
Actual results could differ materially due to a number of factors,
including, without limitation, operational risks in the completion
of Company's anticipated projects, delays or changes in plans with
respect to the development of Company's anticipated projects by
Company's third party relationships, risks affecting the ability to
develop projects, risks inherent in operating in foreign
jurisdictions, the ability to attract key personnel, and the
inability to raise additional capital. No assurances can be given
that the efforts by the Company will be successful. Additional
assumptions and risks are set out in detail in the Company's
MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in
the forward-looking information or statements are reasonable,
prospective investors in the Company's securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law. Investors should note that the Potosi silver mine and La Chinche property
have no established mineral resources or mineral reserves as
defined by NI 43-101. Although Cyprium Mining has made a production
decision regarding the Potosi
silver mine based on historical production records, results of
sampling activities, a feasibility study of this project has not
been completed and there is no certainty that the proposed
operations will be economically or technically viable.
SOURCE Cyprium Mining Corp