Silver Mines secures $20m investment from Lundin, Rule-led fund
The company's flagship project hosts the largest known undeveloped silver resource in Australia.
Sphinx Resources (TSVZ:SFX) is buying 100% interest in the former New Calumet zinc-lead-silver mine in the Pontiac district of Quebec, about 10 km northwest of Bryson. The property, consisting of 14 claims, is being purchased from a pair of prospectors for 7.5 million common shares of Sphinx and a 1% net smelter return, subject to a buyback option.
The purchase consolidates Sphinx’s claims in the district, bringing the total number of claims to 235 covering 13,537 hectares.
The New Calumet mine was a producer from 1943 to 1968. During the time, the mill treated 3.8 million tonnes of ore at 5.8% zinc, 1.6% lead, 65 grams silver per tonne, and 0.4 gram gold per tonne. The historical resource estimate made in 1996 (not NI 43-101 compliant) included “reserves” in two zones above the 600-foot level of 61,326 tonnes grading 217 grams silver and 6.3 grams gold.
Sphinx says in the next few months it will consolidate its databank for the properties. Targets will be identified and, subject to financing, a drill program will be mounted. The company will test the potential for precious metals as well as zinc and copper.
(This article first appeared in the Canadian Mining Journal)
