WALLA WALLA, Wash.,
March 26, 2014 /PRNewswire/
-- Shoshone Silver/Gold Mining Company (SHSH-OTC) announced
today that it has acquired the Gray Eagle Mine property from
Independence Resources Corp. in exchange for 30 million common
shares of Shoshone common stock.
The Gray Eagle property, which is a significant past producer of
both copper and gold, consists of 294 acres of patented mining
claims in Siskiyou County,
California. It is located near the town of Happy Camp, approximately seven miles south of
the Oregon border.
During the 1940's, Newmont Mining Company produced over 460,000
tons of copper bearing ore grading over 3.17% copper from
underground mine workings on the property, making it at the time
the largest copper mine in California. Operations were suspended at the
end of World War II.
In the 1980's, Noranda Mining obtained a lease from Siskon Gold
on the property, and over a five year period ending in 1987,
Noranda produced approximately 180,000 ounces of gold from an open
pit operation on the property, maintaining a head grade of over .20
ounces per ton in gold. Operations were suspended when Noranda lost
its lease, with an unknown amount of oxide gold resource
remaining.
In 1990, Siskon Corporation commissioned a feasibility study by
a large engineering firm, which outlined a resource of 1,100,000
tons grading 2.59% copper and .021 opt gold, using a cutoff grade
of 1.2% copper, mineable by open pit methods. Using a lower cutoff
grade of .4% copper, the report suggested that the global resource
would exceed 14,000,000 tons at an average grade of .75% copper.
Given the economics prevailing at the time, the engineering
feasibility study suggested a PV-10 on the project of $56 million.
The geology of the Gray Eagle deposit can best be described as a
volcanogenic massive sulphide, or VMS deposit. Shoshone plans to conduct an exploration
campaign in the 2014 season to confirm the previous estimates of
resources, as well as to explore the possible extent of the
remaining oxide gold mineralization.
"We are extremely excited about the acquisition of Gray Eagle,"
said Greg Smith, Chairman of
Shoshone. "We believe that the
historic resource of copper can be verified by a new drilling
campaign, and with the economics adjusted to today's environment,
can represent a substantial opportunity for our company. In
addition, we see real potential to extend the oxide gold zone, as
well as to find additional VMS deposits in the area."
This press release may contain certain forward looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Act of 1934,
as amended, which are intended to be covered by the safe harbors
created thereby. Investors are cautioned that all forward looking
statements involve risks and uncertainties and therefore there can
be no assurance that the forward looking statements included in the
press release will prove to be accurate.
For Information Contact:
William Herron
Investor Relations Representative
(509) 529 4497
SOURCE Shoshone Silver/Gold Mining Company