The Silver District Project is an advanced-stage exploration project located in southwest Arizona:
- The Silver District Project in La Paz County, Arizona and has seen limited exploration over the past 30 years.
- The property consists of over 2,000 acres of patented and unpatented mining claims and an Arizona state exploration permit, and covers all of the important historic mines and prospects in the Silver District.
- Mineralization is controlled by three principal sub-parallel north-northwest trending epithermal vein systems cutting Tertiary volcanic rocks underlain by basement metamorphic rocks. The three vein structures extend over a collective strike length of ~12 km (~8 miles). Potential mineralized deposits containing silver, lead-zinc, fluorspar and barite occur along the veins in pod-like bodies commonly 15-50 feet or wider and hundreds of feet long.
- From 1973-1992, New Jersey Zinc Company and Orbex Minerals Ltd. and its successor companies drilled 465 shallow holes for an aggregate length of 62,866 feet, conducted metallurgical test work and carried out scoping studies.
- In 1991-1992, using polygonal methods, historical resources* were estimated at:
- 3.56 million tons grading 4.46 opt silver (15.9 million contained ounces silver), and 2.3 million tons grading 14.5% CaF2 (328,450 tons contained fluorite).
- Included within this mineralization, substantial tonnages grade 17.0% barite (BaSO4) and 3.57% lead-zinc.
- These historic estimations of mineralization do not constitute a reserve estimation (see below disclaimer notes).
- Previous drilling on the veins was entirely in the oxide zone and extended only to 130 ft shallow open pit depth. Mineralization appears to be open below that depth. There appears to be excellent potential to increase resources with deeper drilling of oxide and possibly underlying sulphide mineralization. There also is promising potential to expand the near-surface oxide mineralization through drilling strike extensions of known deposits and previously untested vein segments.
- In 2014, Magellan Gold Corp. drilled three holes, one of which was designed to confirm results of historic drilling. Magellan’s hole PA-01 intersected 90 feet grading 6.05 opt silver (including 10 feet of 17.06 opt silver), which compares favourably to historic results. PA-01’s 90-foot intercept also returned previously unreported zinc-lead values averaging 4.71% zinc and 1.56% lead over the 90 feet, including 10 feet grading 8.35% zinc and 4.02% lead.
- Conceptual development schemes by past operators have involved multiple open pits feeding a central mill. Flow sheet designs employ fine grinding and cyanide leaching to recover silver, and conventional flotation to recover fluorspar and barite.
- Substantial additional work will be required in order to determine the feasibility of developing a new mine. Among other items, the work will need to include drilling, resource estimation, metallurgical studies, mine and plant design and engineering, marketing studies and assessment of permitting issues.
- Until that work and a positive feasibility study is concluded, there can be no assurance that the property contains commercially recoverable minerals.
Disclosure of Historical Estimates*:
The Company considers the prior mineral resource estimate to be a historical estimate for purposes of NI 43-101. The Company plans to assess the historical estimate as it commences work on the Silver District Project to determine whether it can be verified as a current mineral resource estimate under NI 43-101 or the extent of the work that might be required if it can be verified. However, at this time a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource on behalf of the Company and it should not be considered reliable. The estimate does not classify the resource as either a measured, indicated or inferred resource and, accordingly, readers should not assume it satisfies the requirements of any of such classifications. The Company is not treating the historical estimate as a current mineral resource but considers it relevant historical information in respect of the Project. Readers should be cautioned that there is no guarantee that the foregoing historical resource estimate will be verified or confirmed in accordance with the requirements of NI 43-101.
Furthermore, to the extent that the historical estimate is reliable, readers should be cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. The mineral resources at the Silver District Project are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that the historical mineral resource will be converted into mineral resources or mineral reserves, once economic considerations are applied; or that these mineral resources will be converted to measured and indicated and inferred categories through further drilling, or into mineral reserves, once economic considerations are applied.
NV Gold’s management team does not view the Silver District project material to the Company at this time.