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Summa Silver Corp
Symbol SSVR
Shares Issued 21,963,767
Close 2020-06-10 C$ 0.51
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Summa Silver buys E. Belmont claims for $10,200 (U.S.)

2020-06-11 01:41 ET - News Release

Mr. Galen McNamara reports

SUMMA SILVER ANNOUNCES STRATEGIC PROPERTY ACQUISITION AT HUGHES; REPORTS HIGH GRADE HISTORIC UNDERGROUND CHIP SAMPLES

Summa Silver Corp. has acquired a strategic group of mineral claims that are highly prospective for high-grade silver-gold mineralization and already surrounded by the company's Hughes property. In addition, the company has located a series of historic high-grade underground chip samples from the company's Belmont mine, which, between 1903 and 1929, are reported to have produced 36.7 million ounces of silver and 428,000 ounces of gold from 2.1 million tons of rock (1).

Key highlights:

  • Property acquisition: Named the East Belmont claims, the acquired property consists of seven unpatented lode mining claims acquired from an arm's-length third party that are already surrounded by the company's Hughes property.
  • Discovery potential: The East Belmont claims feature extensive and prospective hydrothermal alteration both at surface and in drill holes.
  • Cost-effective purchase: A 100-per-cent interest in the East Belmont claims was purchased for $10,200 (U.S.) with no royalty consideration granted to the vendor.
  • High-grade historic underground samples: Continuing compilation of recently acquired underground sample data suggests there is high-grade potential remaining in the Belmont mine with chip samples across veins grading between 501 and 3,253 grams per tonne silver equivalent* over 0.6 metre*.
  • Belmont mine history: One of the most prolific silver producers in the United States between 1903 and 1929, the mine is reported to have produced 36.7 million oz of silver and 428,000 oz of gold from 2.1 million tons of rock (1). No modern assessment of the remaining potential has ever been completed.
  • Coming exploration program: The company is finalizing plans for a significant drilling and exploration program to begin in July.

Galen McNamara, chief executive officer, stated: "With multiple historic samples returning grades in excess of 2,000 g/t silver equivalent, we believe that there is potential for significant high-grade mineralization remaining in the veins of the company's Belmont mine. Additionally, the newly acquired East Belmont claims are prospective, and we are pleased to have purchased them in a cost-effective deal. We are looking forward to beginning a significant drilling program in the next month and to testing the downdip and strike extensions of these known high-grade veins."

East Belmont claims

This property consists of seven unpatented lode mining claims (134 acres) acquired by the company for $10,200 (U.S.) with no royalty considerations granted to the vendor.

The East Belmont claims are strategic to Summa Silver's near-term exploration strategy on the Hughes property. Four holes drilled on the Hughes property immediately south and west of the East Belmont claims by Echo Bay Mines in 1989 each cut through extensive zones of highly prospective hydrothermal alteration. Of note, vertical holes ET-10 and ET-13 intersected nearly continuous alteration over their entire lengths of 243 m and 458 m, respectively (2). The most prospective alteration zone was intersected in ET-13 and consisted of potassic-silica alteration beginning at 305 metres downhole and continuing over 153 m until the hole was terminated due to adverse drilling conditions and underpowered equipment. Potassic-silica alteration is a key indicator for mineralization in the Tonopah mining district and often occurs immediately adjacent to high-grade epithermal vein and breccia zones. Additionally, vertical hole ET-7, located approximately 250 m west of ET-13, intersected four separate zones of high-grade mineralization, including 0.9 m of 1,587 g/t Ag equivalent beginning 512 m downhole (2).

At surface on the East Belmont claims, zones of strong propylitic and argillic alteration are present in the same volcanic lithology known to host the Tonopah epithermal vein zones. Historic work completed by unknown past operators consists of one shallow mine shaft and numerous mechanically excavated trenches and pits. One drill hole was collared on the property in 1990, but no assay data are available. The company is not in possession of any other exploration data for the East Belmont claims.

Historic underground sampling

Historic samples were collected in 1945 and 1946 by Tonopah Belmont Consolidated Mines (3). No mining is known to have been completed on the property since that time, and the sampled areas are not currently safe to access. Samples are reported to have been collected by hand across sample lengths between 0.3 and 1.2 m. Samples are from the 800 and 900 levels of the Belmont mine, where at least 25 veins were identified underground between 1903 and 1929. Grades were originally reported in dollar values per ton in gold and silver with metal prices of $35 per oz for gold and 70 cents per oz for silver. Sampling locations and widths were restricted to historic workings that were accessible at the time and may only represent parts of the mineralized zones. The results indicated are intersection lengths of chip samples collected across the strike of veins. The location, true width and extent of mineralization are indeterminate until adequate drilling is completed at each of the veins.

The data disclosed in this news release relating to sampling results are historic in nature. Neither the company, nor a qualified person, has yet verified these data, and therefore, investors should not place undue reliance on such data. The company's future exploration work will include verification of the data.

The attached table summarizes the 25 most significant results of the 69 samples located and digitized so far.

                                         SAMPLE RESULTS

Level     Vein                       Sampled width (m)      Au (g/t)      Ag (g/t)     AgEq* (g/t)

900       Favorite series vein                    0.6          17.5         1,854           3,253
900       Favorite series vein                    0.5          13.0         1,381           2,424
900       Favorite series vein                    0.6           6.9           769           1,318
900       Favorite series vein                    0.6           3.4           358             632
900       Favorite series vein                    0.6           2.7           282             501
800       702 vein                                0.9           4.1           392             721
800       702 vein                                0.8           3.8           370             672
800       702 vein                                0.9           3.8           323             625
800       702 vein                                1.1           3.1           343             590
800       702 vein                                0.8           3.1           306             553
800       702 vein                                1.1           5.1           113             524
800       755 vein                                0.6           5.1           514             926
800       Mizpah series vein                      0.6          21.9           350           2,106
800       Mizpah series vein                      0.6           9.3           909           1,649
800       Mizpah series vein                      0.8           9.3           882           1,622
800       Mizpah series vein                      0.8           6.9           678           1,227
800       Mizpah series vein                      0.8           4.8           534             918
800       Mizpah series vein                      0.8           4.5           453             810
800       Mizpah series vein                      0.6           3.1           340             587
800       Mizpah series vein                      0.5           3.1           301             548
800       Mizpah series vein                      0.8           2.7           316             535
800       Mizpah series vein                      1.2           2.7           289             508
800       Occidental series vein                  0.6           8.2           659           1,317
800       Occidental series vein                  0.9           5.5           558             997
800       Occidental series vein                  0.6           7.2           358             934

* Silver equivalent is based on 80 to 1 gold to silver. True widths are unknown.

Exploration plans

The company is finalizing targets for a summer drilling and exploration program that will be designed to test several high-potential targets. The drilling program will be focused on vein extensions in the Belmont mine and other areas. When the planning process is complete, the company expects to release further details. In Nevada, mining has been declared an essential business, and mining companies have been directed to adopt strict social distancing measures throughout operations.

Qualified person

The technical content of this news release has been reviewed and approved by Galen McNamara, PGeo, the chief executive officer of the company, a qualified person as defined by National Instrument 43-101. The qualified person has not verified the data disclosed, including sampling, analytical and test data underlying the information or opinions contained in the written disclosure.

About Summa Silver Corp.

Summa Silver is a Canadian junior mineral exploration company. The company's assets consist of the Hughes property located in central Nevada and the Donna property located in central British Columbia. The Hughes property is host to the high-grade past-producing Belmont mine, one of the most prolific silver producers in the United States between 1903 and 1929. The mine has remained inactive since commercial production ceased in 1929 due to heavily depressed metal prices, and little to no modern exploration work has ever been completed.

References

(1) Production of the Tonopah Belmont Development Company, 1903 to 1932, Nevada Bureau of Mines report No. 48400131.

(2) 1989 drill logs, East Tonopah project, Echo Bay Exploration (true widths unknown).

(3) Summary report on the Belmont mine, 1946, Tonopah Belmont Consolidated Mines.

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