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South American Silver Corp. (TSX:SAC,OTCQX:SOHAF) completed and announced an updated resource estimate for the Jumbo Zone and the Grey Eagle Zone at the Gold Springs gold-silver project that straddles the Nevada-Utah border.
Highlights:
The newly defined M&I resource of 456,000 oz. AuEq averaging 0.67g/t AuEq and an additional 299,000 oz AuEq @0.56 g/t AuEq in the Inferred category, is based on a gold (Au) cutoff of 0.2 g/t. If the cutoff is increased to 0.3 g/t Au then the M&I resource grade increases to 0.84 g/t AuEq for a total of 369,000 oz. AuEq and an additional 208,000 oz AuEq @0.74g/t AuEq. in the Inferred category.
The prior resource published by High Desert Gold Corporation (“HDG”) on March 28, 2013 included 415,254 oz AuEq @0.67 g/t AuEq. All in the Inferred category. The additional AuEq ounces discovered by the 2013 drilling program equates to approximately 6,200 ounces per drill hole for the 55 hole program.
The gold-silver mineralization at both the Jumbo and Grey Eagle Zones remains open to expansion laterally and to depth as the drilling to date has typically only penetrated the top 150 metres vertically below the surface at Jumbo and 200 metres below the surface at Grey Eagle.
The mineralization located in the drill holes typically projects to the surface where it outcrops or is covered by a thin veneer of gravel or post mineral volcanics.
Metallurgical test-work on coarse grained material (HDG PR13-23 dated September 9, 2013) gave good gold extractions, suggesting that low cost “heap-leach” processing may be applicable (crushing only, no mill).
- Grey Eagle extractions: 78.8% gold, 19% silver
- Jumbo extractions: 88.5% gold, 53.5% silver
Metallurgical testing of fine grained material (HDG PR13-23) from the same samples showed very high extractions. Processing fine grained material would require the additional capital cost of a mill to grind the mineralized material and leaching would likely be in vats.
- Grey Eagle extractions: 89% gold, 41% silver
- Jumbo extractions: 93% gold, 76% silver
Metallurgical testing at Jumbo shows that up to 57.2 % of the gold is recoverable by gravity means. (HDG PR10-17, October 18, 2010)
The ZTEM geophysical survey, completed in 2011, indicates that the gold-silver bearing geological/geophysical setting that has been drilled at the Jumbo may continue for approximately 8 kilometres along strike, much of which remains untested. (HDG PR12-14, August 16, 2012).
The total strike length of the margins of the high resistivity ZTEM geophysical targets interpreted to correlate with the gold mineralization is approximately 33 km.
Click here to read the South American Silver Corp. (TSX:SAC,OTCQX:SOHAF) press release
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