Overview

Exploring undeveloped land with the hopes of striking gold is a time-honored mining tradition, but it’s not the only way to create a profitable project. Restarting past-producing mines allows companies to start with proven mineralization, explore stockpile potential and utilize the existing infrastructure. Stockpiles create a fast track to cash flow, as the previous miners may have had different criteria based on the economics of their time. For example, gold mines often stockpiled gold under a specific grade as it was not economically feasible, but given current prices and modern processing technology, it’s now worth processing the stockpiled gold and silver.

Restarting a past-producing mine begins by selecting the proper jurisdiction. Idaho, for instance, has mining-friendly policies that include tax incentives to create rural jobs. The gold rush of the 1800s led to the creation of the state and the famous Silver City, which was founded near prolific silver and gold deposits. Mining policies in Idaho are focused on enabling ease of mining operations, both procedurally and practically.

CMX Gold & Silver (CSE:CXC,OTC:CXXMF) is an exploration and development mining company, focused on Idaho's historic gold and silver assets. The company’s flagship project, the Clayton Silver Mine, is a past-producing asset that operated for 50 years and historically mined over two million tonnes of ore. The ore was never mined out. Mineralization remains open to the north, south and to depth. Very little historical drilling was carried out to confirm more resources. One hole drilled in the 1960s intersected high grades of 4 oz Ag/t, 5.37 percent zinc and 5.75 percent lead across 22 feet at a depth of 1,425 feet. Recent staking of new lands surrounding the patented claims increased the company’s land position by two-thirds to 1,134 acres, adding both value and potential to the project.

CMX Gold & Silver notes that the previous miners simply followed the known vein system, and it was sufficient for their time and goals. However, the company plans to conduct additional exploration using modern techniques to identify other veins. Once identified, the company will conduct drilling operations to confirm survey results and identify additional development opportunities.

The company currently holds 1,134 acres in the Clayton Silver mine, comprising 31 patented and 28 unpatented mining claims.

A strong management team provides confidence in the company’s ability to capitalize on the past-producing mine. Jan Alston, CEO, has worked in the natural resources industry for over 35 years, including practicing business law in the oil and gas sector. Glen Alston, CFO, has 30 years of experience in corporate finance and has worked with mining companies focused on diamonds, precious metals, and base metals. Additional experts in geology and financing bring their specialties to the management team.

Company Highlights

• CMX Gold & Silver is an exploration and development mining company focused on revitalizing a past-producing mine to benefit from known mineralization and existing infrastructure.
• The Clayton Silver Project has historically produced over two million tonnes of ore, and a stockpile of up to 1 million tonnes of rock remains on the property.
• Sulphide Remediation Inc. has been contracted by CMX to process Clayton Silver Mine’s stockpile, allowing the company to generate cash flow in the short-term.
• The previous miners operated for 50 years and followed a main vein system, which was sufficient for their goals. However, CMX believes other vein systems are present that will create additional opportunities, including on the newly staked lands.
• A strong management team with decades of experience in the mining industry builds confidence for the project and the team’s ability to capitalize on the flagship asset.