Silveria Puts Grenville Gold Closer To Production
By Reg Hajman
I can’t say I’ve ever set foot on the rich ground that Grenville Gold refers to as the Silveria project.
What I can say, is that this property is generating a lot of positive data that seems to indicate production could be a lot closer than we think.
Pete Ellsworth, consulting geologist to the Grenville Gold Silveria Project, examined 44 principal portals at the Pacococha, Millotingo, and Germania mining districts to observe vein outcrop and survey the portal locations. In addition, 34 mine dump grab samples were collected and analyzed at ALS Chemex Lima laboratory for gold plus 35 element ICP scan to characterize the geochemistry and zonation of the district. Results show anomalous to low-grade gold values in most samples plus gold ore grades in the Millotingo, Belgica, Reserva and Ernesto Segundo veins.
Silver values show mineralization from all samples collected, with assays ranging from 3.5 to 2,220 grams per ton and base metal credits range up to 3.9% copper, 7.2% lead, and 19.7% zinc. This confirms the high-grade polymetallic nature of the veins from all the districts.
Followers of this story may remember a press release dated
"These reconnaissance exploration samples confirm the Silveria property encompasses rich mineralization," stated Paul Gill, Grenville Gold President in a recent press release. "We look forward to receiving a full 43-101 report on this project and continuing forward with the development of the project."
The Silveria property includes the Millotingo site.
Millotingo operated a 350 tpd mill with average head grade of 24 oz Ag/t Ag from 1962 until 1973. Total mine production over the 30 years was 2.6 million tonnes averaging 16 oz Ag/t with gold credit as a by-product. During this period, a total of 95,000 tonnes of concentrates was produced containing about 39 million oz Ag and 90,000 oz Au. The mine has reported mineral resource of 661,000 tonnes 25 grading 12.8 oz Ag /t (September 1992, not N.I. 43-101 compliant).
So the company could obviously start production here in the very near future. According to the company’s most recent press release:
“The geochemical results from the sampling program confirm Grenville's assumption that these veins are epithermal and the upper levels of the system are eroded over the Pacococha veins. Structural geologic interpretations combined with the geochemical studies suggest the Millotingo mine is stratigraphically higher in the epithermal system where precious metals are enriched and base metals depleted. The boiling level therefore must daylight between the Millotingo zone and the Pacococha mines. These epithermal deposit model interpretations will guide a regional exploration program to locate additional veins and disseminated mineralization.
As stated in a release dated May 8, 2007, the company is also making immediate preparations to begin a test heap leaching program of the Millotingo tailings dam. Initial estimates of tailing grades reveal between 85 grams (3 ozs) and 567 grams (20 ozs) per metric ton of silver, and between 1 and 3 grams per metric ton of gold. The company will proceed with a bulk sample program in order to test the potential for the project to yield significant positive cash flows.
The Silveria project property was in production up until 1991, but has not received serious attention until now. Published documentation on historical production, reserves, reserve ore grades and estimated mine life at December 1990 on the Millotingo and Pacococha Mine are available through "The Peru Report's Guide to Mines and Miners in Peru - Las Minas Del Peru," 1992, page 197-199, 223-225, researched and edited by Jonathon Cavanagh. (Published by Peru Reporting Servicios Editoriales S.R.L.)
Based upon the published information, mine plans, production records and reserve calculations obtained from operators of the two mines, the minimum historic production from two of the four mines indicates 510,291 kilograms (18 million ozs) of silver, 40 million kilograms (88 million lbs) of copper, and 44 million kilograms (96.8 million lbs) of zinc were produced. Management believes a potential target grade of 113.4 grams (4 ozs) per ton silver, 1% copper, and 2.5% zinc is attainable over a potential target tonnage of between 10 and 25 million metric tons of ore grade material.”
With corporate suitors in the wings, a mill that could be re-started with a minimum of rehabilitation investment, and such strong grades in both tailings and historical workings, investors have much to anticipate as this dynamic company moves forward.
Reg Hajman is a free lance writer who specializes in resource companies and micro-cap issues.
