Rich Zinc Assays from El Mochito Mine

With daily production at the El Mochito mine in Honduras now averaging 2,000 tons per day, American Pacific Mining (VSE) is well into an underground exploration program to add reserves to this base metals mine purchased from an Amax Inc. subsidiary in late 1987.

The company picked up the silver, lead and zinc mine for about $12 million(US) following successful negotiations with the Honduran government to reduce onerous taxes, royalty payments and power costs. The mine had operated since 1948, and proven reserves at the time of purchase were 5.61 million tons of ore grading on average 8% zinc, 4% lead, 2.5 oz silver and 0.67% copper. Gold and cadmium values are also present.

Ore at the mine occurs in several veins, manto and pipe replacement deposits. The current diamond drill program at the 2350-ft level in the area of the San Juan orebody is designed to further delineate the Todos Santos Manto ore below this level. Drilling is also under way at a second station 2,000 ft west of the San Juan orebody on the 1850-ft level.

Since the resumption of drilling in San Juan, four drill holes were completed, all reporting rich zinc ore. The best result was a 102 ft intersection of 22.04% zinc, 5.66 oz silver, 1.13% lead, and 0.89% copper. The first hole drilled intersected 84 ft assaying 25.15% zinc, 4.46 oz silver, 1.86% lead and 1.08% copper. Another hole intersected 92 ft of 12.50% zinc, 2.26 oz silver, 1.36% lead and 0.79% copper while the remaining hole cut 83 ft of ore assaying 21.23% zinc, 3.19 oz silver, 1.4% lead and 0.48% copper.

The company said that prior to the closing of the mine in April of 1987, Amax had drilled a hole at a location 2,000 ft west of the San Juan ore body from the 1850-ft level. The drill hole intersected 96 ft of 6.48% zinc before stopping at the 2350 ft elevation. American Pacific Mining has now completed four more holes in a vertical fan pattern to delineate this previously unknown occurrence thought to be the extension of the Todos Santos Manto.

Each of the four holes intersected mineralization grading 6-6.5% zinc over the same thickness of 90-100 ft, which the company said suggests a “minimum lateral extension of 250 ft of the Todos Santos Manto at this location.” More drilling is planned at this station to delineate the full lateral extension of the ore occurrence.

The El Mochito mine is now operating with a work force of about 600, half the force previously employed. First quarter (1988) operating cash flow was reported to have exceeded $3 million. The company expects that during 1988, the mine will produce about 80,000 tons of zinc concentrate and 18,000 tons of lead concentrate which will contain between them over one million oz of silver. American Pacific is also involved in a number of other projects worldwide.