Vancouver – With a number of political dignitaries in attendance, Silver Eagle Mines (SEG-T, SVEGF-O) ceremoniously celebrated startup of operations at its Miguel Auza mine in Zacatecas State, Mexico.
The event marked recent commencement of mining and milling at the polymetallic silver-zinc-lead-gold operation with processing of a bulk sample run comprised of lower-grade material to fine tune the circuit.
The company reports initial processing has resulted in about 70 tonnes of concentrate now stockpiled onsite estimated to contain more than 7,000 oz. of silver plus zinc, lead and gold. Negotiations with local smelter groups are ongoing to arrange for concentrate processing.
Additionally, Silver Eagle has commenced test stoping from its 650-metre long decline resulting in further ore made available. The company also plans the addition of a second ball mill to boost processing capacity to the 300-tonne-per-day level by this years third quarter.
Miguel Auza contains an indicated resource of 186,000 tonnes grading 243 grams silver per tonne, 2.9% zinc, 2.5% lead and 0.3 gram gold per tonnes within the main Calvario vein. Additional inferred resources of 740,000 tonnes averaging 150 grams silver, 2.3% zinc, 2.5% lead and 0.2 gram gold have also been reviewed.
The company continues its drill effort on the mine area with four rigs working to provide data to upgrade the deposits current inferred resource to the indicated category.
Metal mineralization at Miguel Auza is primarily vein-hosted in an epithermal setting within a Cretaceous sedimentary suite and granodiorite intrusive.
Historical mining activity since the 1500s has exploited portions of 17 known veins on the project area. The deepest operations extended to 140 metres depth with all veins remaining open to depth and along strike.
Based on its 35.4 million shares outstanding and recent $1.40 per share trading level, Silver Eagle posts a $50-million market capitalization. The stock has a 52-week trading range of 87-to-$1.65.
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