Cyprium to Evaluate and Process Potosi Silver Mine Stockpiles

Cyprium Mining Corp. (TSXV:CUG) announced that it’s signed an agreement with two companies collectively known at Potosi Silver to evaluate and process up to 50,000 tons of stockpiles from the historic Potosi silver mine on an exclusive basis. The mine is located in Mexico’s Santa Eulalia mining district.

As quoted in the press release:

The Potosi Silver mine was discovered in 1707 and its main commercial operations took place between 1925 and 1991. The mine is located only 42 kilometers from the Aldama plant.

Andre St Michel, president and CEO of Cyprium, commented:

The first phase of this relationship with Potosi Silver is to systematically evaluate the stockpiles from the Potosi Silver mine and to process an initial 1,000 tons at our Aldama plant. Our technical has already started their work with a view of determining exactly how many tons we expect to process out of the 50,000 tons available. We have made plans to ship the first 1,000 tons to our Aldama plant and anticipate to be processing this silver/lead/zinc materialized material in the first week of May. This transaction follows the start of the operations announced just last week with 500 tons of material from a mine in Sonora State. While we have make good progress in filling up the current 100 tons per day capacity of the Aldama processing facility over the last week, we are also continuing to work with other small miners in the state of Chihuahua to secure additional sources of mill feed in anticipation of our planned increase in capacity to 200 tons per day.

Alain Lambert, chairman of Cyprium, said:

Under the agreement, Cyprium will purchase the materialized material from Potosi Silver on a shared profit basis. We believe the shared profit approach is attractive to both our clients and Cyprium. This method of purchasing mineralized material minimizes the cash outlay for the company at the front end of the process while providing the small miner with some upside on profits. After we finalize the initial evaluation of the stockpiles and receive the final technical data on the processing of the first 1,000 tons we will establish exactly how many tons we intend to process. Once we have made that determination, we will pay Potosi Silver an exclusivity payment equal to US $1.00 per ton which will be considered an advance of Potosi Silver’s share of the profits. Finally, in order to retain our exclusivity, Cyprium will need to process a minimum of 500 tons per month prior to July 31, 2015 and 1,000 tons per month thereafter.

Click here to read the full Cyprium Mining Corp. (TSXV:CUG) press release.