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Post by Franko10 ™ on Nov 17, 2004 13:31:19 GMT -5
War Eagle Mining Company Inc.: Tres Marias Mine, Mexico, Pre Drilling Program Nears Completion
11/17/2004 1:37:00 PM
VANCOUVER, British Columbia, Nov 17, 2004 (BUSINESS WIRE) -- War Eagle Mining Company Inc. (TSX VENTURE:WAR) Terry Schorn, President and Dr. David Hackman, Director and Manager of the Tres Marias Mine Development Program, report on results to date, as well as, the next phase of work required to take the Tres Marias Mine to production.
Several necessary pre drilling and drifting programs are nearing completion. These include a property survey and related base maps, geologic mapping of the property, surface geochemical sampling, a magnetic survey around the mine area, an initial survey of the underground workings, installation of a new headframe, shaft repairs and completion of alternate escape route to the 6th level (315 feet or 96 meters below the surface), upgrading of the mine access road of 16 miles or 25 km, renovating a mine office and staff residence, and a metallurgical testing program. Program expenditures to date are $1,048,000 CDN.
Based on the geology of Tres Marias deposit and the surrounding area, it has been concluded that the deposit is a novel, low temperature variety of Mississippi Valley deposit which developed through the following sequence of events: (a) deposition of the host rock, the Santa Elena limestone that was formed in the Cretaceous and slowly uplifted to a shallow ocean or surface environment, a portion of which, was a permeable reef composed of sea shells containing sea water; (b) oil field brines, carrying sulfur, zinc, lead, iron, germanium, and hydrocarbons moved from adjacent structural basins into high-angle fault zones that cut across the Santa Elena limestone and mixed with the sea water with in the reef zone; (C) chemical reactions in the mixing brines resulting in the formation of breccia bodies, collapse zones, and the deposition of sphalerite (ZnS) containing germanium (Ge), galena (PbS), iron sulfides, and gypsum (CaSO4); and (d) fluids containing iron and dissolved gypsum leaked out on to the sea floor, reacted with sea water and formed surficial deposits rich in gypsum and limonite.
As a result, surface depressions, or collapse zones, containing gypsum and iron oxides at or near fault intersections provide easily recognized indications of potential mineralization in the subsurface. The collapse zones containing the Tres Marias deposits provide excellent examples of these characteristics. By using aerial photography more than 50 depressions have been recognized within a nine by two kilometer area of the Tres Marias concessions. Therefore, the entire concession may have the potential for a resource of several million tons of mineralization with a similar grade to that found at the Tres Marias mine.
Sixteen surface drill targets have been selected based on favorable geologic features and geochemical anomalies similar to those at the mine site. These drill targets appear to be at the intersection of cross faults and the main shear zone that runs the length of the mineralized zone (9 kilometers or 6 miles) and will be tested with 2,000 meters (6,500 feet) of diamond drilling.
Preliminary mapping of the underground workings and the surface area around the mine indicate that the potential resource within 200 meters of the shaft could exceed 500,000 tons. An underground sampling program of 1000 samples, an underground diamond drilling program of 1500 meters (4900 feet), a drifting program of 1000 meters (3300 feet), and a metallurgical testing program will be underway in the first quarter of 2005. The diamond drilling is to confirm the location of mineralized zones while the underground drifting (8 X 10 foot workings) is to confirm ore grade and continuity. This phase will produce the necessary data to initiate a feasibility study based on a minimum resource of 500,000 metric tons grading 300grams/ton germanium and 20% zinc.
Initial economic estimates were based on $ 300/kg for germanium and 35cents/pound zinc. Current prices for germanium are $ 600/kg with long term estimates up to $ 1,500/kg and current zinc prices at 51 cents/pound which significantly improves the overall economic prospects for the Tres Marias Mine project.
CUSIP. No. 933901209
The TSX has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.
SOURCE: War Eagle Mining Company Inc.
War Eagle Mining Company Inc.
Bob Faris
V P, Corporate Development
(604) 606-7973 or Toll Free: 1-800-877-1626
Copyright (C) 2004 Business Wire. All rights reserved.
11/17/2004 1:37:00 PM
VANCOUVER, British Columbia, Nov 17, 2004 (BUSINESS WIRE) -- War Eagle Mining Company Inc. (TSX VENTURE:WAR) Terry Schorn, President and Dr. David Hackman, Director and Manager of the Tres Marias Mine Development Program, report on results to date, as well as, the next phase of work required to take the Tres Marias Mine to production.
Several necessary pre drilling and drifting programs are nearing completion. These include a property survey and related base maps, geologic mapping of the property, surface geochemical sampling, a magnetic survey around the mine area, an initial survey of the underground workings, installation of a new headframe, shaft repairs and completion of alternate escape route to the 6th level (315 feet or 96 meters below the surface), upgrading of the mine access road of 16 miles or 25 km, renovating a mine office and staff residence, and a metallurgical testing program. Program expenditures to date are $1,048,000 CDN.
Based on the geology of Tres Marias deposit and the surrounding area, it has been concluded that the deposit is a novel, low temperature variety of Mississippi Valley deposit which developed through the following sequence of events: (a) deposition of the host rock, the Santa Elena limestone that was formed in the Cretaceous and slowly uplifted to a shallow ocean or surface environment, a portion of which, was a permeable reef composed of sea shells containing sea water; (b) oil field brines, carrying sulfur, zinc, lead, iron, germanium, and hydrocarbons moved from adjacent structural basins into high-angle fault zones that cut across the Santa Elena limestone and mixed with the sea water with in the reef zone; (C) chemical reactions in the mixing brines resulting in the formation of breccia bodies, collapse zones, and the deposition of sphalerite (ZnS) containing germanium (Ge), galena (PbS), iron sulfides, and gypsum (CaSO4); and (d) fluids containing iron and dissolved gypsum leaked out on to the sea floor, reacted with sea water and formed surficial deposits rich in gypsum and limonite.
As a result, surface depressions, or collapse zones, containing gypsum and iron oxides at or near fault intersections provide easily recognized indications of potential mineralization in the subsurface. The collapse zones containing the Tres Marias deposits provide excellent examples of these characteristics. By using aerial photography more than 50 depressions have been recognized within a nine by two kilometer area of the Tres Marias concessions. Therefore, the entire concession may have the potential for a resource of several million tons of mineralization with a similar grade to that found at the Tres Marias mine.
Sixteen surface drill targets have been selected based on favorable geologic features and geochemical anomalies similar to those at the mine site. These drill targets appear to be at the intersection of cross faults and the main shear zone that runs the length of the mineralized zone (9 kilometers or 6 miles) and will be tested with 2,000 meters (6,500 feet) of diamond drilling.
Preliminary mapping of the underground workings and the surface area around the mine indicate that the potential resource within 200 meters of the shaft could exceed 500,000 tons. An underground sampling program of 1000 samples, an underground diamond drilling program of 1500 meters (4900 feet), a drifting program of 1000 meters (3300 feet), and a metallurgical testing program will be underway in the first quarter of 2005. The diamond drilling is to confirm the location of mineralized zones while the underground drifting (8 X 10 foot workings) is to confirm ore grade and continuity. This phase will produce the necessary data to initiate a feasibility study based on a minimum resource of 500,000 metric tons grading 300grams/ton germanium and 20% zinc.
Initial economic estimates were based on $ 300/kg for germanium and 35cents/pound zinc. Current prices for germanium are $ 600/kg with long term estimates up to $ 1,500/kg and current zinc prices at 51 cents/pound which significantly improves the overall economic prospects for the Tres Marias Mine project.
CUSIP. No. 933901209
The TSX has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.
SOURCE: War Eagle Mining Company Inc.
War Eagle Mining Company Inc.
Bob Faris
V P, Corporate Development
(604) 606-7973 or Toll Free: 1-800-877-1626
Copyright (C) 2004 Business Wire. All rights reserved.
