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Arizona Eagle Mining (TSXV: AZEM)(OTCQB:AZEMF) said Monday it has completed the acquisition of 62 acres histing three past-producing high-grade silver mines with an operating water well with extraction rights in Yavapai County, Arizona.
The Arizona National mine, the Lookout mine and the Silver Belt mine are five parcels located on strike with, and approximately one kilometre northeast of the company’s McCabe gold-silver deposit.
These acquisitions extend the structural corridor of mineralization northeast of McCabe by 50%, from 3km to 4.5km and increases Arizona Eagle’s patented land ownership by 18%, from 348 to 410 acres.
Between 1980 and 1984, Stan West Mining spent $12 million on drilling and developing the McCabe deposit to a depth of 315 metres, the company said.
An additional $23M was spent 1986 to build a 500 tpd mill and initiate underground production. In 1984, Stan West published a Total Reserve Estimate of 878,000 ounces of gold at a grade of 11.7 g/t, as well as 5,120,000 ounces of silver grading 69 g/t.
“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 a news release.
“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 g/t silver, with sampling of the Arizona National Mine waste pile returning grades of up to 861 g/t silver and 15.6 g/t 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 Mining’s stock closed the day up 8.75% in Toronto. The company has a C$39.4 million ($35.6 million) market capitalization.
