Cyprium Mining announces assays results and provides exploration update from the Potosi silver mine

MONTREAL, June 13, 2016 /CNW Telbec/ - Cyprium Mining Corp. ("Cyprium" or the "Company") (TSX-V: CUG and CUG.DB) is pleased to announce the results from nine underground samples taken as part of its ongoing exploration program of the Tunel body of the Potosi silver mine located in Santa Eulalia, Mexico. The term Tunel body refers to the area accessed by the Potosi No. 3 shaft on levels 1 to 4 of the Potosi mine.

The seven samples were taken from level 3.5 and yielded average values of 214 g/t Ag, 7.21% Pb and 6.44 Zn over an average sample width of 1.18 meters. The Company announced in August 2015 the results from two samples taken from the same area. These two samples yielded averages of 100 g/t Ag, 2.79% Pb and 8.43% Zn over 1.45 meters.

The results announced today are part of the first phase of work, exploration and evaluation of the mineralization on levels 2 to 4 of the Potosi mine near the Potosi No. 3 shaft, termed the Tunel body. Access to the area is via the portal of the main tunnel from the surface on level 0 and various irregular workings that connect to the lower levels. The Company has recently completed the rehabilitation the Potosi No. 3 shaft with a winch to facilitate further exploration in the area using sampling as well as drilling by long-hole methods. Drilling and blasting using company equipment is also planned in this area. Cyprium has completed some preliminary mapping and surveying and compilation of historical data is in progress. 

Mineralization in the area is exposed in shallowly south dipping mantos in stopes on levels 4 and 3 as well as in steeper chimneys that possibly connect the mantos. Mapping and sampling is designed to determine the controls on mineralization to direct future exploration. The main exposures of mineralization studied to date are in a large stope on level 4. Most of the mineralization on the upper levels of the Potosi mine is oxidized, but local areas with preserved sulfides on the upper levels such as level 4 were discovered in the last few decades ⁽¹⁾.  Such sulfide orebodies were not economically exploitable prior to the advent of selective flotation in the early 1900's and were evidently left behind for this reason and later forgotten. These "perched" sulfide bodies were possibly preserved due to the proximity of the capping series that may have prevented oxidation. The capping series lies unconformably over the Cretaceous limestone and was deposited on an eroded surface with significant relief. The sequence is composed of variable lithologies consisting of limestone and volcanic conglomerate, tuff, and locally marl. The unit has been measured at several hundred meters in thickness, but has been largely eroded over the Potosi mine property and occurs as remnants less than about 250 meters in thickness.  The unit is variably propylitized in the Santa Eulalia West Camp where the Potosi mine is located and the base of the unit may contain some base metal veins and some orebodies are localized at the contact with the underlying carbonate rocks, but it generally is not mineralized. 

The Santa Eulalia District

Santa Eulalia is a world class polymetallic mining district located in the central part of the State of Chihuahua, Mexico, approximately twenty-two kilometers east of the City of Chihuahua. Mineralization in the area was originally discovered during the Spanish colonial period in the 1500's, and recorded production has occurred over more than 300 years. Santa Eulalia ranks as one of Mexico's primary silver and base metal producing districts with nearly 450 million ounces of silver and substantial amounts of lead and zinc mined. The nature of the deposit in the Santa Eulalia district is a carbonate replacement deposit and is the historically largest of its type in Mexico. Mineralization occurs in an area about 10 km in length and 5 km in width. Production and reserves for the district have been estimated to be about 50 million metric tons ⁽²⁾ with grades of 125-350 g/t Ag, 2-8% Pb and 3-12% Zn ^{(2) (3)}, along with appreciable quantities of tin and vanadium. 

The Santa Eulalia district covers approximately forty-eight square kilometers and is divided into three areas, the West Camp, the Central Camp and the East Camp. The Potosi silver mine is located in the West Camp. The West Camp has produced most of the minerals from the district from an area 4 km long in a north-south direction and 2 km wide in an east-west direction, with the Potosi silver mine being one of the primary producers.

Based on the geology, past mining activity and the exploration work completed by the Company to date, the Potosi mine, the Company believes that the project warrants further exploration. Widely spaced sampling on levels 3-4 in the area of the Potosi #3 shaft (Tunel body) and levels 6 and 9-11 in the area of the Potosi #1 shaft (Santo Domingo or Main Silicate body) 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. 

Geological Setting, Deposit Type and Mineralization

Mineralization in the Santa Eulalia district is characterized by massive sulfides, dominantly pyrrhotite, sphalerite, galena and pyrite that are hosted mainly in horizontal mantos and steep chimneys of sulfide material that replace limestone, with some breccia bodies also occurring.  Mineralized bodies occur along laterally continuous discrete structural zones that mainly trend in a north-south orientation, with mineralization forming preferentially in certain stratigraphic units. Past mining has reached to as much as 700 meters depth below the surface on 21 levels. Production in the West camp was diminished until the late 80's with the discovery of new mineralization. Currently there is little production in the district.

National Policy 43-101 Report

Cyprium has engaged Dr. Craig Gibson to complete a National Instrument 43-101 report with respect to the initial mine levels 2, 3 and 4 of the Potosi silver mine. It is expected the report will be completed before the end of June 2016. The report to be prepared by Dr. Gibson shall not contain a resource or reserve calculation.

Quality Assurance and Control

Samples taken in underground workings are typically channel samples. Sample cuttings consist of rock chips taken along pre-marked channels approximately 15-20 cm in width that span the mineralized zone and are collected at the site by an experienced sampling crew under the supervision of a Company geologist. Sample material, generally consisting of from 1.0 to more than 6.0 kg of material, is placed in labelled plastic bags that are sealed with ties at the collection site. The samples are then transported from the mine and stored at the Company's or contractors surface facilities or are taken directly to the lab preparation facility. The samples are transported in Company vehicles and delivered to the sample preparation facility by personnel of the contractor. 

Cyprium maintains a quality control program. Samples are placed in labeled bags with a sample tag and are delivered directly to the laboratory, ALS Chemex de Mexico, located in Chihuahua City. Control samples consisting of standards and blanks are added to the sample stream prior to delivery. All samples were analyzed in Vancouver for the reported metals by the Me-OG62 method for higher grade samples.  Silver assays were checked by fire assay with a gravimetric finish. ALS Chemex is part of ALS Global, an internationally recognized analytical laboratory. 

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.

Qualified Person: Dr. Craig Gibson, Certified Professional Geologist, prepared the summary of public historical information on the Santa Eulalia district, and has reviewed the appropriate portions of this news release and approved the contents thereof.  Public information included in this release are based on work by from a PhD dissertation by Peter K. M. Megaw and information from the Mexican Geologcial Survey (Servicio Geologico Mexicano).

References:

(1) P. Megaw, pers. Comm.

(2) Megaw, P.K.M., 1990, Geology and geochemistry of the Santa Eulalia mining district, Chihuahua, Mexico, unpublished PhD dissertation, University of Arizona, 461 pp.

(3) Bustos-Diaz, J.L. and Arzabala-Molina, J., 2007, Monografia Geologico-Minera del Estado de Chihuahua, Servicio Geologico Mexicano, 640pp.

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 and results from recent sampling, a feasibility study of its projects has not been completed and there is no certainty that the proposed operations will be economically or technically viable.

SOURCE Cyprium Mining Corp.