South American Silver Corp. (TSX:SAC,OTCQX:SOHAF) announced the completion of an updated resource estimate for the Jumbo and Grey Eagle zones at its gold-silver Gold Springs project, which sits on the border between Nevada and Utah.
The company notes that the new measured and indicated resource totals 456,000 gold equivalent ounces averaging 0.67 grams per tonne (g/t) gold equivalent at a gold cut off of 0.2 g/t; the inferred category contains a further 299,000 gold equivalent ounces at 0.56 g/t gold equivalent.
Other highlights include:
- The prior resource published by High Desert Gold Corporation (‘HDG’) on March 28, 2013 included 415,254 oz AuEq @0.67 g/t AuEq. All in the Inferred category. The additional AuEq ounces discovered by the 2013 drilling program equates to approximately 6,200 ounces per drill hole for the 55 hole program.
- The gold-silver mineralization at both the Jumbo and Grey Eagle Zones remains open to expansion laterally and to depth as the drilling to date has typically only penetrated the top 150 metres vertically below the surface at Jumbo and 200 metres below the surface at Grey Eagle.
- The mineralization located in the drill holes typically projects to the surface where it outcrops or is covered by a thin veneer of gravel or post mineral volcanics.
- Metallurgical test-work on coarse grained material (HDG PR13-23 dated September 9, 2013) gave good gold extractions, suggesting that low cost ‘heap-leach’ processing may be applicable (crushing only, no mill).
- Grey Eagle extractions: 78.8% gold, 19% silver
- Jumbo extractions: 88.5% gold, 53.5% silver
- Metallurgical testing of fine grained material (HDG PR13-23) from the same samples showed very high extractions. Processing fine grained material would require the additional capital cost of a mill to grind the mineralized material and leaching would likely be in vats.
- Grey Eagle extractions: 89% gold, 41% silver
- Jumbo extractions: 93% gold, 76% silver