Queries Silver Eureka hopes rind on construction

It has been about five years now since I heard anything from Silver Eureka Mining which holds a 25% interest in Eureka, Nevada-based Ruby Hill Mining Co.

A number of years ago, Silver Eureka received $4 million for a French gold property. Whatever happened to the proceeds? T. H., Dallas, Tex. Still alive and well, COATS-listed Silver Eureka Mining is controlle d by TRV Minerals (VSE) of Vancouver.

As you say, Silver Eureka sold its French mining properties — principally the Salsigne gold mine — to government-controlled Compagnie Francaise de Mines (Coframines) in 1980 for 16 million francs.

In terms of 1980 U.S. dollars, that translated into around $4 million. According to Silver Eureka secretary Jhe Bias, the proceeds were spent by TRV on the Stibnite mine in Idaho.

Located about 95 miles northeast of Boise, the project was operated by Pioneer Metals in a joint venture with TRV until the latter company sold its 25% interest to Pioneer in 1986 for $1.6 million.

The original $4 million was apparently put to good use because the Stibnite joint venture now involving Pioneer and MFC Mining Finance Corps. (TSE) produced 30,400 oz gold and 15,400 oz silver from heap leach operations in 1986.

Bias says about $2 million has been repaid so far, and the $2 million still owing is expected to be repaid in TRV shares.

Silver Eureka’s principal asset is a 25% interest in Ruby Hill Mining Co.

Held 75% by Sharon Steel, Ruby Hill will attempt to extract some gold this year from about 200,000 tons of dump material still remaining from about 100 years of mining operations.

Located in Nevada’s Eureka district, the Ruby Hill property also contains a deep polymetallic deposit which was mined by a consortium of companies including Hecla Mining and Cyprus Anvil Mines until water problems (10,000 gallons per minute) forced it to abandon the operation.

A 2,300-ft shaft and 3,132,500 tons grading 0.16 oz gold, 6.65 oz silver, 3.7% lead and 8.3% zinc per ton still remain on the property.

But Sharon Steel project development manager Tim Sadler says, the deposit will remain in the ground for the forseeable future.

Meanwhile, Silver Eureka also holds 1.4 million shares (10%) of another Vancouver company called HPY Industries which controls a West German industrial manufacturer — Fulgrit.

The West German company reportedly sold over $100 million worth of non-asbestos products last year to the construction industry and with an expanded operation in place, Bias said he feels optimistic about the prospects for his company.