VANCOUVER, July 31,
2014 /PRNewswire/ - Wildcat Silver Corporation (TSX:
WS) ("Wildcat" or the "Company") is pleased to announce an
updated resource for the lead/zinc/silver Sulfide Skarn Zone at its
Hermosa Project and a C$2 million
private placement that will fund additional drilling on the
zone. The updated resource results from the remodelling of
the drill and geologic data using parameters specific to the
sulfide mineralization and includes several significant intercepts
of lead/zinc skarn mineralization. The Sulfide Skarn Zone is
located down-dip and below the Manto Oxide (silver/manganese) Zone
that was included in the December
2013 Hermosa pre-feasibility study.
Wildcat Silver's President and COO,
Don Taylor, said "The Sulfide Skarn
Zone represents a separate and distinct project from the Manto
Oxide Zone, providing another positive addition to Hermosa.
This zone clearly indicates the size potential and robust nature of
the mineralizing system. Based on the drilling to date, it
appears there is an opportunity to significantly expand the
resource down dip and along strike to the south and west and the
private placement enables us to fund additional drilling to test
that potential. Currently, we envision the skarn project as
an underground mine with simple flotation processing with the
potential to add considerable value to the overall Hermosa
Project."
The Hermosa Sulfide Skarn mineral resource is
provided below. It should be noted that mineral resources that are
not mineral reserves and do not have demonstrated economic
viability.
Hermosa Sulfide
Skarn Mineral Resource
|
|
Tons
(000s)
|
Lead
(%)
|
Zinc
(%)
|
Silver
(opt)
|
Copper
(%)
|
Measured
|
896
|
2.66
|
4.94
|
1.28
|
0.12
|
Indicated
|
803
|
2.38
|
3.97
|
1.07
|
0.11
|
Measured &
Indicated
|
1,699
|
2.53
|
4.48
|
1.18
|
0.11
|
|
|
|
|
|
|
|
Tons
(000s)
|
Lead
(%)
|
Zinc
(%)
|
Silver
(opt)
|
Copper
(%)
|
Inferred
|
4,836
|
3.66
|
5.25
|
1.47
|
0.16
|
Assumptions: Cut-off of $70 per
ton; Metal Prices of Pb $0.94/lb, Zn
$0.84/lb, Ag $20/oz, Cu $3.20/lb; Contained metal recovery of
95%.
The Sulfide Skarn has been intersected by 15
diamond drill holes located on Wildcat's patented claims, of which
the assay results from all of the drill holes have been previously
reported. Based on these drill results and certain
anticipated operating parameters, the above updated 43-101 mineral
resource was calculated. The Hermosa Sulfide Skarn resource
was calculated separately from the previously reported Manto Oxide
and Upper Silver Zone mineral resource. The updated Sulfide Skarn
mineral resource represents a significant increase in tonnage and
grade from the previously announced 2013 Sulfide Skarn mineral
resource and more importantly focuses on the lead and zinc
potential.
The Sulfide Skarn mineralization is composed of
coarse grained galena, sphalerite, chalcopyrite and pyrite hosted
in altered limestone. The mineralization remains open for
potential expansion to the west, south and north. Wildcat intends
to drill an additional four to five holes on its patented claims to
test the extension of the mineralization. The majority of the
Sulfide Skarn Zone is accessible from Wildcat's patented claim
block.
Private Placement
Wildcat has arranged
for a non-brokered private placement with the Chairman and CEO of
the Company of 4.5 million units at C$0.45 per unit for gross proceeds of
C$2 million. Each unit is comprised
of one Wildcat common share and one common share purchase warrant
exercisable into one additional Wildcat common share at a price of
C$0.55 per Wildcat common share for a
period of two years.
The private placement includes the conversion
into common shares of loan advances and interest at 7% totalling
approximately C$0.6 million that were
previously provided by Wildcat's Chairman and CEO. The net
proceeds from the financing of approximately C$1.4 million will be used for drilling to test
the extension of the skarn resource and for general working capital
purposes.
Closing of this transaction is subject to
regulatory approval.
Drill Hole Summary
A summary of the
most significant drill intercepts for the Hermosa Sulfide Skarn
Zone can be found below. Please see Appendix A for a drill
hole location map.
Hole
|
From
(feet)
|
To
(feet)
|
Interval
(in
feet)
|
Pb
%
|
Zn
%
|
Ag
opt
|
Cu
%
|
Au
opt
|
HDS-102
|
1,857
|
1,922
|
65
|
4.79
|
7.11
|
1.97
|
0.12
|
0.001
|
HDS-102
|
1,956
|
1,967.5
|
11.5
|
8.60
|
9.44
|
2.89
|
0.16
|
0.002
|
|
|
|
|
|
|
|
|
|
HDS-103
|
2,231.5
|
2,242
|
10.5
|
11.04
|
14.36
|
3.19
|
0.15
|
0.001
|
HDS-103
|
2,338
|
2,353
|
15
|
8.17
|
2.56
|
2.28
|
0.15
|
0.002
|
HDS-103
|
2,678
|
2,688
|
10
|
4.37
|
5.53
|
1.24
|
0.04
|
0.002
|
HDS-103
|
2,733
|
2,743
|
10
|
6.20
|
7.00
|
1.76
|
0.18
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-104
|
1,012
|
1,367
|
355
|
5.31
|
8.22
|
2.22
|
0.17
|
0.002
|
HDS-104
|
1,442
|
1,477
|
35
|
3.48
|
4.22
|
1.64
|
0.79
|
0.002
|
|
|
|
|
|
|
|
|
|
HDS-106
|
1,405
|
1,537
|
132
|
1.36
|
3.63
|
0.90
|
0.06
|
0.001
|
HDS-106
|
1,583
|
1,590
|
7
|
0.40
|
5.97
|
0.41
|
0.02
|
0.002
|
|
|
|
|
|
|
|
|
|
HDS-107
|
1,477
|
1,487
|
10
|
1.16
|
5.33
|
4.37
|
0.43
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-109
|
1,555
|
1,601
|
46
|
6.70
|
8.81
|
2.49
|
0.22
|
0.004
|
HDS-109
|
1,622
|
1,707
|
85
|
4.41
|
7.25
|
1.55
|
0.28
|
0.002
|
HDS-129
|
1,667
|
1,756
|
89
|
6.68
|
8.36
|
2.48
|
0.18
|
0.002
|
HDS-129
|
1,822
|
1,837
|
15
|
4.15
|
3.65
|
1.54
|
0.15
|
0.001
|
HDS-129
|
1,907
|
1,972
|
65
|
2.96
|
3.66
|
1.04
|
0.11
|
0.002
|
|
|
|
|
|
|
|
|
|
HDS-137
|
1,182.5
|
1,212
|
29.5
|
2.74
|
5.79
|
0.99
|
0.04
|
0.001
|
HDS-137
|
1,272
|
1,281.5
|
9.5
|
4.36
|
2.13
|
1.63
|
0.07
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-145
|
1,182
|
1,205
|
23
|
2.49
|
3.95
|
3.20
|
0.26
|
0.002
|
HDS-145
|
1,214
|
1,220.5
|
6.5
|
3.17
|
5.30
|
2.07
|
0.28
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-152
|
1,378
|
1,462
|
64
|
0.08
|
8.11
|
0.16
|
0.01
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-153
|
1,886
|
1,914.5
|
28.5
|
3.34
|
5.32
|
1.00
|
0.31
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-188
|
725
|
750
|
25
|
2.10
|
3.43
|
3.63
|
0.20
|
0.002
|
|
|
|
|
|
|
|
|
|
HDS-204
|
1,514
|
1,549
|
35
|
0.11
|
4.24
|
0.15
|
0.02
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-240
|
1,287
|
1,382.5
|
95.5
|
3.71
|
5.51
|
1.80
|
0.26
|
0.002
|
HDS-240
|
1,411.5
|
1,424
|
12.5
|
5.56
|
6.30
|
2.49
|
0.20
|
0.001
|
|
|
|
|
|
|
|
|
|
HDS-269
|
1,355
|
1,370
|
15
|
3.62
|
5.28
|
1.87
|
0.19
|
0.002
|
Qualified Person
Scott Wilson, President
of Metal Mining Consultants, is an independent qualified
person as defined by National Instrument 43-101 and has approved
and verified the information in this news release in relation to
the Hermosa mineral reserve and mineral resource estimates. Mr.
Wilson is a Certified Professional Geologist and member of
the American Institute of Professional Geologists (CPG
#10965) and a Registered Member (#4025107) of the Society of
Mining, Metallurgy and Exploration, Inc., a professional
association and designation recognized by the Canadian regulatory
authorities.
About Wildat
Wildcat is a
Canadian mineral exploration company focused on the development of
its 80% owned Hermosa silver-manganese project located in
Santa Cruz County, Arizona. When
in production, Hermosa is expected to be one of the largest primary
silver producers as well as the only electrolytic manganese metal
producer in the USA at industry
low cash costs. The recently announced pre-feasibility study
(December 10, 2013) estimates, annual
production of 5.7 million ounces of silver and 110 million pounds
of electrolytic manganese metal (EMM) at average cash costs of
$4.41 per silver ounce and
$0.74 per EMM pound over an 18 year
mine life.
Cautionary Note Regarding Forward-Looking
Information
Certain information contained in this press
release constitutes forward-looking statements. All
statements, other than statements of historical facts, are forward
looking statements including statements with respect to the
Company's intentions for its Hermosa project in Arizona, USA including, without limitation,
closing the private placement of C$2
million, drilling four to five holes on the Skarn Zone,
expected future mineral production and operating
costs. Forward-looking statements are often, but not
always, identified by the use of words such as may, will, seek,
anticipate, believe, plan, estimate, budget, schedule, forecast,
project, expect, intend, or similar expressions.
The forward-looking statements are based on a
number of assumptions which, while considered reasonable by
Wildcat, are subject to risks and uncertainties. In addition
to the assumptions herein, these assumptions include the
assumptions described in Wildcat's management's discussion and
analysis for the year ended December 31,
2013 ("MD&A"). Wildcat cautions readers that
forward-looking statements involve and are subject to known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to differ materially
from those expressed in or implied by such forward-looking
statements and forward-looking statements are not guarantees of
future results, performance or achievement. These risks,
uncertainties and factors include general business, economic,
competitive, political, regulatory and social uncertainties; actual
results of exploration activities and economic evaluations;
fluctuations in currency exchange rates; changes in project
parameters; changes in costs, including labour, infrastructure,
operating and production costs; future prices of silver and other
minerals; variations of mineral grade or recovery rates; operating
or technical difficulties in connection with exploration,
development or mining activities, including the failure of plant,
equipment or processes to operate as anticipated; delays in
completion of exploration, development or construction activities;
changes in government legislation and regulation; the ability to
maintain and renew existing licenses and permits or obtain required
licenses and permits in a timely manner; the ability to obtain
financing on acceptable terms in a timely manner; contests over
title to properties; employee relations and shortages of skilled
personnel and contractors; the speculative nature of, and the risks
involved in, the exploration, development and mining business; and
the factors discussed in the section entitled "Risks and
Uncertainties" in the MD&A.
Although Wildcat has attempted to identify
important risks, uncertainties and other factors that could cause
actual performance, achievements, actions, events, results or
conditions to differ materially from those expressed in or implied
by the forward-looking information, there may be other risks,
uncertainties and other factors that cause performance,
achievements, actions, events, results or conditions to differ from
those anticipated, estimated or intended. Unless otherwise
indicated, forward-looking statements contained herein are as of
the date hereof and Wildcat disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable law.
Appendix A: Hermosa Sulfide Skarn Drill Hole
Location Map with Resource Outline
SOURCE Wildcat Silver Corporation