The Clayton Silver Mine has a multi-decade history of production. Although a substantial amount of high grade ore was mined from the property until operations were suspended in 1986, the project has significant untapped potential:
The Company will commence work programs this year and extending over the next several years to assess the resource potential within the structures related to the previously mined sections and to expand the search to determine the potential for other mineralized zones in adjacent structures. This will entail detailed geophysical work and multiple drill programs. The Issuer has concluded that very little geophysics was done on the property historically and, as well, exploration drilling was limited.
The Company plans to commence the first program during the second half of 2022 with geophysical work to pinpoint drill locations for immediate follow-up drilling within the known mineralized systems identified and referred to as the South and North Ore Bodies in the old mine workings.
Mine Stockpile Exploitation Potential
Management is investigating the potential of high-grading the material contained in the mine rock stockpile. The stockpile consists of rock that was not processed through the mill as the grade was considered not high enough at the time it was mined. Discussions are being held with an engineering firm that utilizes precision ore-sorting technology to enhance the grade of material delivered to a toll mill. The technology has the potential to improve grades up to tenfold.
The stockpile is estimated to contain greater than 500,000 tonnes and could be as much as 1,000,000 tonnes of metal-bearing material readily available for immediate processing. If an arrangement is reached, as early as May 2022 the engineering firm would take samples from the stockpile for analysis and process testing before proceeding with the ore sorting program later in 2022 or in early 2023. The goal is to generate cash flow for the Company in 2023.
A preliminary assessment of the potential of the mine stockpile was undertaken in 2014/15. Representatives of the Company collected a total of 95 samples from 19 locations, including 16 locations on the stockpile situated immediately adjacent to the old Clayton Mine workings and extending to the south. An aggregate of over 3,000 kilograms of sample material was collected. Test locations were selected to ensure representative samples. The Company’s management was on site during sampling to ensure random sample selection.
Results from analysis of the mine stockpile samples confirmed the presence of a suite of metals. Panning of material from the stockpile has confirmed the presence of free, relatively coarse gold, while analysis of the samples documents the presence of gold in each sample. In particular, assays confirmed gold values up to 2.84 gm/t (Sample 11369) with an average of 0.80 gm/t for the 16 locations comprised of the initial suite of samples.
Statistical averages of the 16 locations of the mine stockpile sampling program:
. Au – 0.80 gms/t
. Ag – 24.31 gms/t
· Mn – 0.60%
· Pb – 0.44%
· Zn – 0.27%
CLAYTON SILVER PROJECT
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