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Starts Production at the Potosi Silver Mine

Cyprium Mining Corporation (CUG.V) announced that it has initiated the first phase of production at the past-producing underground Potosi silver-lead-zinc mine in northern Mexico, with plans to further increase production.

After receiving an explosives permit the company will start blasting on levels 2 and 4.

Extracted materials are sent to the Aldama one-hundred metric tons per day flotation plant located 42 kilometers from the Potosi mine.

The concentrates produced at the plant will be shipped to Trafigura Mexico.

Trafigura Beheer BV is a Dutch multinational commodity trading company founded in 1993 that trades in base metals and energy, including oil.

It is the world’s third largest private oil and metals trader after Vitol and Glencore.

Results of sampling from Potosi Mine

 

AREA

SAMPLES Width Ag g/t Pb% Zn % Fe% Mn%
Level 6 3 1.53 733 1.1 0.5 7.78 1.31
Level 9 10 1.12 246 4.3 4.3 2.97 1.18
Level 10 15 1.16 78 3.3 4.1 8.39 0.61
Level 11 9 1.84 45.5 2.0 4.1 2.76 0.11

The Santa Eulalia Mining District

Santa Eulalia is a world class polymetallic mining district located in the central part of the State of Chihuahua, Mexico, approximately twenty-two kilometers east of the City of Chihuahua. Mineralization in the area was originally discovered during the Spanish colonial period in the 1500’s, and recorded production has occurred over more than 300 years. Santa Eulalia ranks as one of Mexico’s primary silver and base metal producing districts with over 500 million ounces of silver and substantial amounts of lead and zinc mined. The Santa Eulalia district is a Carbonate Replacement Deposit (CRD) and is the largest of its type known in Mexico.

Production and reserves for the district have been estimated to be about 50 million metric tons with grades of 125-350 g/t Ag, 2-8% Pb and 3-12% Zn.

The Santa Eulalia district covers approximately forty-eight square kilometers and is divided into three areas, the West Camp, the Middle Camp and the East Camp. The Potosi silver mine is located in the West Camp, which has produced most of the district’s ores with the Potosi silver mine being one of the two principal producers.

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