Silver One Resources Inc. [SVE-TSXV; SLVRF-OTC; BRK1-FSE] said Thursday October 15 that it has launched a 15,000-metre reverse circulation drilling program on its 100%-owned Candelaria silver project in Nevada.
The Candelaria Mining District, located in west-central Nevada, is historically the richest silver mining region in the Silver State and is estimated to have produced 22 million ounces of the precious metal between the late 1880s and 1954.
From 1874 to 1883, the Northern Belle Deposit alone produced high grade lodes averaging 1,700 to 2,000 g/t silver. More recently, open pit mining between 1980 and 1999 resulted in the production of 47 million ounces of silver with Kinross Gold Corp. [K-TSX; KGC-NYSE] producing 13 million ounces between 1994 and 1999.
A technical report prepared for Silver Standard Resources Inc. (now SSR Mining Inc. [SSRM-TSX, NASDAQ; SSR-ASX]), when it was preparing to buy the mine from Kinross in 2001, estimated that the Candelaria property contains a measured and indicated resource of 44.1 million ounces of silver. On top of that is an inferred resource of 82.3 million ounces.
According to the report, the Candelaria resource includes the remaining down-dip mineral resources for both the Mount Diablo and Northern Belle deposits, as well as remaining resources in two leach pads and two low grade stockpiles.
However, at the time of the report, there were no estimated mineable reserves at the Candelaria project.
Silver One’s goal is to re-evaluate these resources and to explore for potential high-grade down-dip targets and potential along strike extensions of the historic Candelaria open-pit mines mineralization.
Reverse circulation material will also be used for metallurgical testing on the near surface mineralization proximal to the two open pits. The aim is to complete an economic study on both the historic leach pads and on combining near-surface mineralization with the heap leach pad material.
“This drill program and the subsequent metallurgical and economic studies are best considered as Phase 1 in the ongoing, longer term redevelopment of Candelaria,” said Silver One President and CEO Greg Crowe.
He said the vision for the project entails an earlier potential recovery of silver from the historic heaps, where the company recently announced an NI 43-101-compliant indicated resource of 30.02 ounces of silver and an inferred resource of 15.4 million ounces.
“Alternatively, a combining of heap leach material and fresh open-pit material will also be considered,” Crowe said.
He went on to say that Silver one will continue to examine the high-grade, down-dip extensions of the mineralized system that could significantly add to the life of any potential future operation.
“Additionally, the possibility of sulphide-bearing, silver-gold-copper rich IOCG (iron oxide copper gold) or skarn mineralization at depth has never been tested,” Crowe said. “Should significant concentrations of this style of mineralization be outlined, it would significantly alter and enhance the merits of this project,” he said.
On Thursday, Silver One shares eased 3.1% or $0.02 to 63 cents on volume of 77,115. The shares are trading in a 52-week range of 87 cents and 14.5 cents.