Arizona Eagle buys three-past producing silver mines  

Arizona Eagle Mining (TSXV: AZEM; US-OTC: AZEMF) said Monday it’s acquired about 251,000 sq. metres of land hosting three past-producing high-grade silver mines in Yavapai County, Arizona.  

The newly acquired properties include the Arizona National mine, the Lookout mine and the Silver Belt mine, according to a statement dated Monday. The new parcels are located on strike with, and about 1 km northeast of, the company’s McCabe gold-silver deposit. An operating water well with extraction rights is part of the deal.

The acquisitions extend the structural corridor of mineralization northeast of McCabe by 50%, to 4.5 km. They also boost Arizona Eagle’s patented land ownership by 18% to 1.7 sq. km.  

Previous owner Stan West Mining spent $12 million (C$17 million) on drilling and developing the McCabe deposit to a depth of 315 metres between 1980 and 1984. 

Another $23 million was subsequently spent to build a 500 tonne-per-day mill and start underground production. In 1984, Stan West published a reserve estimate of 878,000 oz. gold at a grade of 11.7 grams gold per tonne, as well as 5.12 million oz. silver grading 69 grams.  

“These high-grade silver mines served as major sources of silver production in Arizona until the 1930s. Mining operations at that time were limited to relatively shallow oxidized depths, with the deepest shaft reaching only 150 metres, allowing for the opportunity for further discoveries at depth,” Arizona Eagle CEO Kevin Reid said in the statement.

“These mines have been privately held by multiple parties and dormant for almost 100 years,” Reid said. “Surface sampling on the Eagle Silver property has returned grades up to 344 grams silver, with sampling of the Arizona National Mine waste pile returning grades of up to 861 grams silver and 15.6 grams gold.”  

An additional sampling program was recently completed on the newly acquired claims and the company is applying the same strategy employed at the McCabe gold-silver deposit. 

“We see the opportunity to revive these mines through the application of modern exploration methods and systematic drilling, and we firmly believe that the Eagle project offers exceptional discovery potential in one of Arizona’s most prolific historic gold-silver districts,” Reid said.  

Arizona Eagle shares fell 2.3% to 85¢ % in Toronto Tuesday, valuing the company at about C$48 million ($35 million). The stock has traded between 75¢ and C$1.83 in the past year.