Metalline
Mining Company
News
Release: For immediate release June 14, 1999
Coeur d’Alene,
Idaho -
Metalline Mining Company announces that their Sierra Mojada Project is being
evaluated by major mining companies for Joint Venture participation. Metalline President Merlin Bingham said “I
have noticed a strong increase in interest in the oxide zinc portion of Sierra
Mojada since Reunion Mining PLC was purchased by Anglo American.” Anglo’s purchase of Reunion acquired the
Skorpion Project, Namibia, Africa, a Solvent Extraction Electrowinning project
with a 20 million tonne deposit grading 10% zinc.
Oxide zinc ore grading about
30% zinc has been direct shipped from Sierra Mojada for the past 40 years,
primarily from the San Salvador, Encantada and Fronteriza mines. The remainder of the current drill program,
about 3000 meters, will be drilled in these three mines over a distance of 1500
meters. Oxide zinc ore has been mined
in the district over a distance in excess of 5 kilometers. The high-grade direct shipping ore of the
San Salvador, Encantada and Fronteriza has been mined throughout a volume of
rock 1500 meters by 200 meters by 100 meters vertically, a volume of 30 million
cubic meters. An average 10% grade in
only 20% of this volume is 20 million tonnes of ore and would sustain 5000
tonne per day operations. Production of
5000 tonne per day would make Sierra Mojada the fifth largest zinc mine in the
world. The probability of developing
this required tonnage in these three mines is considered to be very good and
there is an additional 3.5 kilometers in which to continue to develop reserves.
The mineral system continues beyond the mined 5 kilometers to the east and the
west and probably to the south.
The results from an
additional 5 Reverse Circulation drill holes follows. These holes are all drilled in the Encantada North silver,
copper, zinc and lead sulfide target.
Four holes, R9912, R9914, R9915 and R9916 intersected ore grade
mineralization over mineable thickness.
R9913 did not intersect ore grade mineralization.
Hole R9915 was the highlight
of this round of drilling and the best hole drilled to date in the program.
Hole-Id From To Ag Ag Cu Zn Pb $
Value
g/mt oz/mt % % % per
mt
Metal
Prices $ 0.16/g 5.00/oz 0.75/lb 0.64/lb 0.25/lb
R9915 183 184 109 3.5 <.01 0.89 0.21 31.13
R9915 184 185 2590 83.3 0.03 10.95 11.55 632.60
R9915 185 186 3672 118.1 0.04 7.25 21.90 810.71
R9915 186 187 777 25.0 0.01 1.84 4.44 174.81
R9915 187 188 288 9.3 <.01 0.68 2.24 67.97
R9915 188 189 97 3.1 <.01 0.79 0.66 30.31
R9915 189 190 46 1.5 <.01 0.84 0.44 21.64
R9915 190 191 50 1.6 <.01 0.32 0.26 13.95
R9915 191 192 62 2.0 <.01 0.16 0.19 13.19
R9915 192 193 206 6.6 <.01 0.43 0.90 43.96
R9915 193 194 114 3.7 <.01 0.12 0.57 23.06
Average
11 meters (36 feet) 728 23.4 0.01 2.21 3.94 169.39
Average
4 meters (13 feet) 1832 58.9 0.02 5.18 10.03 421.52
Average
3 meters (10 feet) 2346 75.4 0.03 6.68 12.63 539.37
R9915 also extends the known limits of the
Encantada North ore zone to the south by about 30 meters and the zone remains
open to extension and definition in all directions.
The weighted average grade
of all ore grade intersects in the 15 holes in the north side sulfide zone, is
$87 per tonne, at the listed metal prices, still well above that required for
an economic operation. The highest
average, for the north side Encantada and San Salvador zone, after hole R997,
was $105 per tonne. The average grade
will continue to vary as the program to develop reserves continues until a final
grade and tonnage is determined and feasibility is completed.
Balance of results:
Hole-Id From To Ag Ag Cu Zn Pb $
Value
g/mt oz/mt % % % per
mt
Metal
Prices $ 0.16/g 5.00/oz 0.75/lb 0.64/lb 0.25/lb
R9912 156 157 90 2.9 0.18 0.35 0.23 23.61
R9912 157 158 105 3.4 0.09 0.91 0.31 32.80
R9912 158 159 75 2.4 0.08 0.99 0.28 28.75
R9912 159 160 137 4.4 0.28 0.60 0.19 35.95
Average
4 meters 102 3.3 0.16 0.71 0.25 30.28
R9912 168 169 738 23.7 0.19 0.26 0.12 125.54
R9912 169 170 350 11.3 0.07 0.08 0.05 58.56
R9912 170 171 155 5.0 0.02 0.05 0.02 25.94
R9912 171 172 97 3.1 0.02 0.06 0.01 16.69
R9912 172 173 98 3.1 0.01 0.06 0.03 16.82
R9912 173 174 82 2.6 0.03 0.03 0.01 14.03
R9912 174 175 107 3.4 0.03 0.08 0.12 19.32
R9912 175 176 58 1.9 <.01 0.06 0.17 11.04
R9912 176 177 157 5.0 0.07 0.03 0.04 26.92
R9912 177 178 258 8.3 0.44 0.13 0.01 50.43
R9912 178 179 92 3.0 0.19 0.04 <.01 18.48
R9912 179 180 124 4.0 0.21 0.10 <.01 24.71
R9912 180 181 118 3.8 0.07 0.08 0.03 21.33
Average
13 meters 187 6.0 0.10 0.08 0.05 33.06
R9914 193 194 100 3.2 0.09 0.05 <.01 18.19
R9914 194 195 124 4.0 0.14 0.10 0.01 23.61
R9914 195 196 131 4.2 0.13 0.08 0.01 24.29
R9914 196 197 108 3.5 0.11 0.07 0.01 20.06
R9914 197 198 150 4.8 0.08 0.03 0.01 25.80
R9914 198 199 103 3.3 0.08 0.04 0.01 18.34
Average
6 meters 119 3.8 0.20 0.06 0.01 23.30
R9914 206 207 142 4.5 0.24 0.07 0.03 27.75
R9914 207 208 151 4.9 0.29 0.09 0.03 30.38
R9914 208 209 176 5.7 0.26 0.12 0.03 34.30
Average
3 meters 156 5.0 0.26 0.09 0.03 30.81
R9916 139 140 146 4.7 <.01 3.97 1.02 84.87
R9916 140 141 3 0.1 <.01 0.04 <.01 1.04
R9916 141 142 117 3.7 0.02 4.39 1.37 88.32
Average
3 meters 89 2.8 0.01 2.80 0.80 58.08
R9916 156 157 597 19.2 <.01 0.97 0.95 114.40
R9916 157 158 237 7.6 <.01 0.88 0.79 54.66
R9916 158 159 49 1.6 <.01 0.22 0.14 11.69
Average
3 meters 294 9.5 0.00 0.69 0.63 60.25
Hole-Id From To Ag Ag Cu Zn Pb $
Value
g/mt oz/mt % % % per
mt
Metal
Prices $ 0.16/g 5.00/oz 0.75/lb 0.64/lb 0.25/lb
R9916 170 171 166 5.3 <.01 0.17 0.21 30.11
R9916 171 172 191 6.1 <.01 0.14 0.29 34.13
R9916 172 173 90 2.9 <.01 0.06 0.06 15.57
Average
3 meters 149 4.8 0.00 0.12 0.19 26.60