Silver Spruce to Acquire Past-Producing Kay Mine, Arizona
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Silver Spruce Resources Inc. has entered a purchase agreement with Cedar Forrest, LLC to acquire 100 percent ownership of 70.84 acres of patented claims covering the past-producing Kay Mine, located in Yavapai county, Arizona, roughly 50 miles north of Phoenix.
The Kay Copper Company and others produced Au-Ag-Cu-Pb-Zn ore on the property intermittently from 1916 until 1956. Exploration conducted from 1972 to 1982 by Exxon Minerals Company, a subsidiary of Exxon Petroleum, indicates that substantial additional mineralization exists down dip and potentially along strike from the previously producing mineral deposits.
Known mineralization occurs in two zones of massive sulfide, the North and South Zones, extending from the surface to at least 2100 feet in depth. Mineralization is open at depth. A November 1982 internal Exxon Minerals Company report by M. L. Fellows stated that the deposit contains a resource of “proven and probable ore” with a tonnage of 6.4 million short tons grading an estimated 2.2 percent copper, 3.03 percent zinc, 1.6 ounces per ton silver and 0.082 ounces per ton gold. The estimate was made using assay data from historic mine level plans and Exxon drill hole intercepts. Exxon’s use of the word “ore” is not to be construed in the strict sense.
After examining mine assay level plans and Exxon drill hold data, Silver Spruce has concluded that “indicated mineral resource” is the appropriate term for Exxon’s historical estimate. Additional drilling is needed to verify this estimate. Silver Spruce has not conducted sufficient work to definitively classify Exxon’s resource estimate to be compliant with NI-43-101 resource definitions. Exxon also reported the deposits to be open down dip, with significant additional potential for the discovery of new deposits.
“We are excited to have this opportunity to purchase, explore and develop resources at the Kay Mine property, located near Black Canyon City, Arizona, a very mining supportive community. We intend to apply geophysical methods that did not yet exist in the early 1980’s and to drill the historic estimate outlined by Exxon,” said Karl J. Boltz, president and CEO of Silver Spruce.
Upon execution of the purchase agreement to acquire 100 percent interest in the patented claims, free of any royalties, Silver Spruce has paid a non-refundable deposit of US $50,000 to Cedar Forrest.
The company will pay US $450,000 cash to Cedar Forrest within 75 days.
Cedar Forrest will carry a two-year, 6 percent, convertible debenture for the principle amount of US $477,000 which is the balance of the total purchase price.
About Silver Spruce
Silver Spruce Resources Inc. is a well-positioned Canadian junior exploration company pursuing development of the Pino De Plata and the Encino De Oro epithermal silver/ base metal/ gold projects located in the prolific Sierra Madre Occidental region of western Chihuahua State in Mexico. Silver Spruce also retains a portfolio of uranium and rare earth element properties in Labrador.
To stop by Silver Spruce’s website, CLICK HERE
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