Mr. Don Taylor reports
WILDCAT SILVER HIGHLIGHTS SULFIDE SKARN POTENTIAL AT HERMOSA WITH UPDATED RESOURCE AND ANNOUNCES C$2 MILLION PRIVATE PLACEMENT
Wildcat Silver Corp. has released an updated resource for the lead/zinc/silver sulphide skarn zone at its Hermosa project and has arranged a $2-million private placement that will finance additional drilling on the zone. The updated resource results from the remodelling of the drill and geologic data using parameters specific to the sulphide mineralization and includes several significant intercepts of lead/zinc skarn mineralization. The sulphide skarn zone is located downdip and below the manto oxide (silver/manganese) zone that was included in the December, 2013, Hermosa prefeasibility study.
Wildcat Silver's president and chief operating officer, Don Taylor, said: "The sulphide 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 downdip 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 sulphide skarn mineral resource is provided in the table. It should be noted that mineral resources that are not mineral reserves and do not have demonstrated economic viability.
HERMOSA SULPHIDE SKARN MINERAL RESOURCE
Tons Lead Zinc Silver Copper
(000) (%) (%) (oz/t) (%)
Measured 896 2.66 4.94 1.28 0.12
Indicated 803 2.38 3.97 1.07 0.11
Measured and indicated 1,699 2.53 4.48 1.18 0.11
Inferred 4,836 3.66 5.25 1.47 0.16
Assumptions: cut-off of $70 per ton; metal prices of 94 cents per
pound Pb, 84 cents per pound Zn, $20 per ounce Ag and $3.20 per
pound Cu; contained metal recovery of 95 per cent.
The sulphide 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 National Instrument 43-101 mineral resource was calculated. The Hermosa sulphide skarn resource was calculated separately from the previously reported manto oxide and upper silver zone mineral resource. The updated sulphide skarn mineral resource represents a significant increase in tonnage and grade from the previously announced 2013 sulphide skarn mineral resource, and more importantly focuses on the lead and zinc potential.
The sulphide 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 sulphide 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 chief executive officer of the company of 4.5 million units at 45 cents per unit for gross proceeds of $2-million. Each unit comprises one Wildcat common share and one common share purchase warrant exercisable into one additional Wildcat common share at a price of 55 cents 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 per cent totalling approximately $600,000 that were previously provided by Wildcat's chairman and CEO. The net proceeds from the financing of approximately $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 sulphide skarn zone can be found in the table.
DRILL HOLE SUMMARY
Hole From To Interval Pb Zn Ag Cu Au
(ft) (ft) (ft) (%) (%) (oz/t) (%) (oz/t)
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 No. 10965) and a registered member (No. 4025107) of the Society of Mining, Metallurgy and Exploration Inc., a professional association and designation recognized by the Canadian regulatory authorities.
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