VANCOUVER, July 31, 2014 /CNW/ - Wildcat Silver Corporation (TSX: WS) ("Wildcat" or the "Company") is pleased to announce an updated resource for the lead/zinc/silver Sulfide Skarn Zone at its Hermosa Project and a C$2 million private placement that will fund additional drilling on the zone. The updated resource results from the remodelling of the drill and geologic data using parameters specific to the sulfide mineralization and includes several significant intercepts of lead/zinc skarn mineralization. The Sulfide Skarn Zone is located down-dip and below the Manto Oxide (silver/manganese) Zone that was included in the December 2013 Hermosa pre-feasibility study.
Wildcat Silver's President and COO, Don Taylor, said "The Sulfide Skarn Zone represents a separate and distinct project from the Manto Oxide Zone, providing another positive addition to Hermosa. This zone clearly indicates the size potential and robust nature of the mineralizing system. Based on the drilling to date, it appears there is an opportunity to significantly expand the resource down dip and along strike to the south and west and the private placement enables us to fund additional drilling to test that potential. Currently, we envision the skarn project as an underground mine with simple flotation processing with the potential to add considerable value to the overall Hermosa Project."
The Hermosa Sulfide Skarn mineral resource is provided below. It should be noted that mineral resources that are not mineral reserves and do not have demonstrated economic viability.
| Hermosa Sulfide Skarn Mineral Resource |
|||||
| Tons (000s) |
Lead (%) |
Zinc (%) |
Silver (opt) |
Copper (%) |
|
| Measured |
896 |
2.66 |
4.94 |
1.28 |
0.12 |
| Indicated |
803 |
2.38 |
3.97 |
1.07 |
0.11 |
| Measured & Indicated |
1,699 |
2.53 |
4.48 |
1.18 |
0.11 |
| Tons (000s) |
Lead (%) |
Zinc (%) |
Silver (opt) |
Copper (%) |
|
| Inferred |
4,836 |
3.66 |
5.25 |
1.47 |
0.16 |
Assumptions: Cut-off of $70 per ton; Metal Prices of Pb $0.94/lb, Zn $0.84/lb, Ag $20/oz, Cu $3.20/lb; Contained metal recovery of 95%.
The Sulfide Skarn has been intersected by 15 diamond drill holes located on Wildcat's patented claims, of which the assay results from all of the drill holes have been previously reported. Based on these drill results and certain anticipated operating parameters, the above updated 43-101 mineral resource was calculated. The Hermosa Sulfide Skarn resource was calculated separately from the previously reported Manto Oxide and Upper Silver Zone mineral resource. The updated Sulfide Skarn mineral resource represents a significant increase in tonnage and grade from the previously announced 2013 Sulfide Skarn mineral resource and more importantly focuses on the lead and zinc potential.
The Sulfide Skarn mineralization is composed of coarse grained galena, sphalerite, chalcopyrite and pyrite hosted in altered limestone. The mineralization remains open for potential expansion to the west, south and north. Wildcat intends to drill an additional four to five holes on its patented claims to test the extension of the mineralization. The majority of the Sulfide Skarn Zone is accessible from Wildcat's patented claim block.
Private Placement
Wildcat has arranged for a non-brokered private placement with the Chairman and CEO of the Company of 4.5 million units at C$0.45 per unit for gross proceeds of C$2 million. Each unit is comprised of one Wildcat common share and one common share purchase warrant exercisable into one additional Wildcat common share at a price of C$0.55 per Wildcat common share for a period of two years.
The private placement includes the conversion into common shares of loan advances and interest at 7% totalling approximately C$0.6 million that were previously provided by Wildcat's Chairman and CEO. The net proceeds from the financing of approximately C$1.4 million will be used for drilling to test the extension of the skarn resource and for general working capital purposes.
Closing of this transaction is subject to regulatory approval.
Drill Hole Summary
A summary of the most significant drill intercepts for the Hermosa Sulfide Skarn Zone can be found below. Please see Appendix A for a drill hole location map.
| Hole |
From (feet) |
To (feet) |
Interval (in feet) |
Pb % |
Zn % |
Ag opt |
Cu % |
Au opt |
| HDS-102 |
1,857 |
1,922 |
65 |
4.79 |
7.11 |
1.97 |
0.12 |
0.001 |
| HDS-102 |
1,956 |
1,967.5 |
11.5 |
8.60 |
9.44 |
2.89 |
0.16 |
0.002 |
| HDS-103 |
2,231.5 |
2,242 |
10.5 |
11.04 |
14.36 |
3.19 |
0.15 |
0.001 |
| HDS-103 |
2,338 |
2,353 |
15 |
8.17 |
2.56 |
2.28 |
0.15 |
0.002 |
| HDS-103 |
2,678 |
2,688 |
10 |
4.37 |
5.53 |
1.24 |
0.04 |
0.002 |
| HDS-103 |
2,733 |
2,743 |
10 |
6.20 |
7.00 |
1.76 |
0.18 |
0.001 |
| HDS-104 |
1,012 |
1,367 |
355 |
5.31 |
8.22 |
2.22 |
0.17 |
0.002 |
| HDS-104 |
1,442 |
1,477 |
35 |
3.48 |
4.22 |
1.64 |
0.79 |
0.002 |
| HDS-106 |
1,405 |
1,537 |
132 |
1.36 |
3.63 |
0.90 |
0.06 |
0.001 |
| HDS-106 |
1,583 |
1,590 |
7 |
0.40 |
5.97 |
0.41 |
0.02 |
0.002 |
| HDS-107 |
1,477 |
1,487 |
10 |
1.16 |
5.33 |
4.37 |
0.43 |
0.001 |
| HDS-109 |
1,555 |
1,601 |
46 |
6.70 |
8.81 |
2.49 |
0.22 |
0.004 |
| HDS-109 |
1,622 |
1,707 |
85 |
4.41 |
7.25 |
1.55 |
0.28 |
0.002 |
| HDS-129 |
1,667 |
1,756 |
89 |
6.68 |
8.36 |
2.48 |
0.18 |
0.002 |
| HDS-129 |
1,822 |
1,837 |
15 |
4.15 |
3.65 |
1.54 |
0.15 |
0.001 |
| HDS-129 |
1,907 |
1,972 |
65 |
2.96 |
3.66 |
1.04 |
0.11 |
0.002 |
| HDS-137 |
1,182.5 |
1,212 |
29.5 |
2.74 |
5.79 |
0.99 |
0.04 |
0.001 |
| HDS-137 |
1,272 |
1,281.5 |
9.5 |
4.36 |
2.13 |
1.63 |
0.07 |
0.001 |
| HDS-145 |
1,182 |
1,205 |
23 |
2.49 |
3.95 |
3.20 |
0.26 |
0.002 |
| HDS-145 |
1,214 |
1,220.5 |
6.5 |
3.17 |
5.30 |
2.07 |
0.28 |
0.001 |
| HDS-152 |
1,378 |
1,462 |
64 |
0.08 |
8.11 |
0.16 |
0.01 |
0.001 |
| HDS-153 |
1,886 |
1,914.5 |
28.5 |
3.34 |
5.32 |
1.00 |
0.31 |
0.001 |
| HDS-188 |
725 |
750 |
25 |
2.10 |
3.43 |
3.63 |
0.20 |
0.002 |
| HDS-204 |
1,514 |
1,549 |
35 |
0.11 |
4.24 |
0.15 |
0.02 |
0.001 |
| HDS-240 |
1,287 |
1,382.5 |
95.5 |
3.71 |
5.51 |
1.80 |
0.26 |
0.002 |
| HDS-240 |
1,411.5 |
1,424 |
12.5 |
5.56 |
6.30 |
2.49 |
0.20 |
0.001 |
| HDS-269 |
1,355 |
1,370 |
15 |
3.62 |
5.28 |
1.87 |
0.19 |
0.002 |
Qualified Person
Scott Wilson, President of Metal Mining Consultants, is an independent qualified person as defined by National Instrument 43-101 and has approved and verified the information in this news release in relation to the Hermosa mineral reserve and mineral resource estimates. Mr. Wilson is a Certified Professional Geologist and member of the American Institute of Professional Geologists (CPG #10965) and a Registered Member (#4025107) of the Society of Mining, Metallurgy and Exploration, Inc., a professional association and designation recognized by the Canadian regulatory authorities.
About Wildat
Wildcat is a Canadian mineral exploration company focused on the development of its 80% owned Hermosa silver-manganese project located in Santa Cruz County, Arizona. When in production, Hermosa is expected to be one of the largest primary silver producers as well as the only electrolytic manganese metal producer in the USA at industry low cash costs. The recently announced pre-feasibility study (December 10, 2013) estimates, annual production of 5.7 million ounces of silver and 110 million pounds of electrolytic manganese metal (EMM) at average cash costs of $4.41 per silver ounce and $0.74 per EMM pound over an 18 year mine life.
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements including statements with respect to the Company's intentions for its Hermosa project in Arizona, USA including, without limitation, closing the private placement of C$2 million, drilling four to five holes on the Skarn Zone, expected future mineral production and operating costs. Forward-looking statements are often, but not always, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Wildcat, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in Wildcat's management's discussion and analysis for the year ended December 31, 2013 ("MD&A"). Wildcat cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled "Risks and Uncertainties" in the MD&A.
Although Wildcat has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Wildcat disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
Appendix A: Hermosa Sulfide Skarn Drill Hole Location Map with Resource Outline
PDF available at: http://stream1.newswire.ca/media/2014/07/31/20140731_C1292_PDF_EN_4548.pdf
SOURCE: Wildcat Silver Corporation
Letitia Cornacchia, Vice President, Investor Relations and Corporate Communications, Telephone: +1 416 860 6310, Email: [email protected]
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