Silver Spruce Resources has received first assays of mineralized rock samples taken from the development/production dumps at the Kay Mine in Arizona.
These first twenty-five samples were taken for data verification purposes to confirm the tenor of mineralization reported by Exxon Minerals and previous developers of the mine. Eighteen of the samples consisted of volcanogenic massive sulphide (VMS) and sulphide-bearing material. Assay values from these samples are listed with their respective over-limit values.
"We are very encouraged by the assay values produced from samples taken during several Company- hosted, third-party tours of the Kay Mine project in September and October," stated Karl Boltz, CEO of Silver Spruce. "These assays are a good indication of metal values in the development rock which was taken from the underground levels of the mine during its initial construction and production preparation phase, prior to 1957, when the mine was flooded. Assay results from an additional fourteen samples are pending."
The majority of the sulphide-bearing samples were collected from the historic development/production dumps at Shaft #4. It should be noted that the grab samples are selective by nature and values reported may not be representative of mineralized zones. Examination of the mineralized material indicated disseminated to semi-massive to massive sulphides, consisting of pyrite, sphalerite, chalcopyrite and galena in banded, lenticular and breccia to replacement textures. Compositional layering from <1mm to 2cm in thickness were comprised of pyrite-dominant and base metal-bearing units. Coarse-grained pods and veinlets of chalcopyrite and sphalerite from 1-3cm also infill silicified rhyolite breccias.
Kay Mine Background
The Kay VMS deposits were developed for production on eleven levels and accessed via four shafts prior to 1957, when the pumping station was damaged and the mine was flooded. Records obtained by Silver Spruce indicate that approximately 1,550 tons of ore grading 5.6% Cu, with individual bulk samples from 2.95-9.47% Cu, with Pb, Zn, Au and Ag credits, was mined on the 250 foot and 500 foot levels from 1949 to 1953, and shipped to various smelters in Arizona and Texas. An estimated 15,000 tons of low grade material was reported on the surface dumps in 1956. The last production of 70 tons grading 5.7% Cu selected from the surface dumps was shipped by a private owner in 1966.
In 1972, Exxon acquired the project with the goal of commencing production of the known high-grade Cu-Zn-Pb-Ag-Au ores. Exxon's internal geological reports referred to the mineralization defined by drilling and historical underground exploration, under the then existing mining standards, as "proven and probable ore" of 6.4 million tons with a potential of over 20 million tons. These resource estimates and terminology are to be considered historical and not compliant with current NI 43-101 guidelines.
The Company believes that the previous work conducted by Exxon was completed to a high standard of competency and credibility. Silver Spruce is developing exploration programs to document the tonnage and grade of the Kay mineralization and develop a resource estimate to conform to the present National Instrument 43-101 standards.
Silver Spruce also is investigating the cost, logistics and permitting requirements to de-water the mine workings for direct access to the mineralization.