Cyprium Mining Corporation
TSX VENTURE : CUG

Cyprium Mining Corporation

September 30, 2014 14:30 ET

Cyprium Mining Intersects High Grade Massive Sulphide Veins at Las Cristinas

MONTREAL, QUEBEC--(Marketwired - Sept. 30, 2014) -

Highlights:

  • Intersects high grade massive sulphide veins
    • Includes 1.30 m interval at 9.5% Cu and 35 g/t Ag and 0.50 m interval at 12.1% Cu and 1 g/t Ag
  • Results support the company's initial decision to start underground exploration program and production later this year
    • Includes intervals of 12.2 m at 1.4 % Cu and 4 g/t Ag and 10.8 m at 1.4% Cu and 5 g/t Ag
    • Includes intervals of 4.55 m 3.0% Cu and 17 g/t Ag, 5 m at 3.2% Cu and 14 g/t Ag and 2.65 m at 3.0% Cu and 12 g/t Ag
  • Evidence of enrichment at depth to be tested as part of the second phase of drilling
  • Permit application for underground exploration program and production submitted to SEMARNAT (Secretariat de Medio Ambiante y Recursos Naturales of Mexico)

Cyprium Mining Corporation ("Cyprium Mining" or the "Company") (TSX VENTURE:CUG)(TSX VENTURE:CUG.DB) is pleased to announce assay results from the first phase of drilling on its Las Cristinas property located in Chihuahua State, Mexico. The first phase of drilling consisted of 1,204 meters of diamond drilling and focused on the North Mount and South Mount, a 550 meter long mineralized section located at the southern end of the property where copper production took place in the early 1970's. A total of twelve holes were drilled to a maximum vertical depth of 150 meters.

"The drilling results obtained thus far validate our geological model and confirm our belief in the very significant exploration potential of Las Cristinas", said Andre St Michel, President and CEO of Cyprium. "They support our business model of advancing the development of the Las Cristinas project in the short-term as we have found evidence of mineralization at a shallow vertical depth of 20 m to 80 m in the mineralized structure known as Semana Santa 2. Semana Santa 2 also returned favorable copper metal factor (Cu % multiplied by true thickness in meters) in the South Mount also near surface, opening up the potential for open-pit production in this area."

Drilling Highlights

The main objective of the first phase of the drilling program was to test potential sulphide copper/silver mineralization close to the surface and along the South and North Mounts. To date, Cyprium's drilling program has outlined copper mineralization over an investigated area 550 meters long by 100 meters wide. This area contains four major structures ranging from 0.25 meter to 10 meters of true width, averaging approximate grades of 0.2% to 12.4% copper and from 2 g/t to 298 g/t Ag (silver). One hole was done to verify the near surface rock stability to support the mine development design. The four structures are identified as Semana Santa and Semana Santa 1 to 3 ("SS"). The thickest and best mineralized parts of these structures were encountered in SS 1 and SS 2. The south east sector of where drilling was conducted presented the best assays and the best continuity for copper/silver mineralization.

Hole LC2014dd10 intersected SS1 over a 10,8 m interval (10,32 m true width) of 1.4% Cu and 5 g/ton Ag including 2.65 m (2.54 m true width) of 3.0% Cu and 12 g/t Ag. Hole LC2014dd09, which is located 200 m to the north east of hole LC2014dd10 intersected SS1 over a 12.2 m interval (10.57 m true width) of 1.4% Cu and 4 g/ton Ag including 5 m (4.3 m true width) of 3.2% Cu and 14 g/t Ag. The interval in hole LC2014dd10 is from a depth of 61.10 m to 71.90 meters while the interval in hole LC 2014dd09 is from a depth of 104.60 m to 116.80 m, demonstrating an enrichment of mineralization at depth. This analysis is supported by a stronger copper metal factor (Cu% multiplied by true thickness in meters) at depth.

Hole LC2014dd05 intersected SS1 over a 1.25 m interval (0.93 m true width) of 4.9% Cu and 6 g/ton Ag and SS2 over an interval of 4.55 m (3.73 m true width) of 3.0% Cu and 17 g/ton Ag. In all diamond drill holes, several intersections exposed a typical stockwork structure. This stockwork, based on the actual grid spacing, presents levels of mineralisation in copper and silver that are irregular but always present.

Enrichment At Depth

The analysis of the drilling results, more particularly the intervals in hole LC2014dd10 and hole LC 2014dd09 demonstrate an enrichment of mineralization at depth. This analysis is also supported by a stronger copper metal factor (Cu % multiplied by true thickness in meters) at depth.

To view the metal factor results of SS1 and SS2 please click on the following links:

http://www.cypriummining.com/jpdf/web/?pdf=Seccion_Longitudinal_Semana_Santa_1_Factor_Metal_Final_25_Sep2014.pdf

http://www.cypriummining.com/jpdf/web/?pdf=Seccion_Longitudinal_Semana_Santa_2_Factor_Metal_Final_25_Sep2014.pdf

At depth, the south east sector area shows the best copper metal factor, a network of calcite veins with more siderite, the presence of chalcopyrite as well as anomalous values in zinc and lead, at the bottom of holes 5, 6 and 9, suggesting a positive mineral gradient for more massive metal concentration, related to replacement sulphide mineralization at the contact of the intrusive - limestone, below the level of the present exploration. The copper related mineralization is present in zones strongly depleted in aluminum and in potassium indicating a hydrothermal alteration.

Massive Sulphide

Several holes intersect high grade centimetric massive sulphide including hole LC2014dd04 which intersect SS2 over a 0.10 m interval (0.08 m true width) of 8.2% Cu and 48 g/ton Ag. Also, hole LC2014dd05 which intersected SS1 over a 0.50 m interval (0.37 m true width) of 12.1% Cu and 1 g/ton Ag. It also intersected SS2 over a 1.30 m interval (1.06 m true width) of 9.5% Cu and 35 g/t.

Underground Exploration Program and Production Plan

Mr. St Michel commented: "The analysis of these drilling results supports our decision to start an underground exploration program and production at Las Cristinas by the end of 2014. To that end we have filed an application with SEMARNAT. Our short-term plans include building a ramp and drifts into the mineralized structures, cleaning up of the old shaft and stockpiling mineralized rock from past production once we get approval from SEMARNAT".

Phase 2 Drilling

Cyprium is currently planning the second phase of drilling which it will undertake by year end. The main goal of the next phase of drilling will be to test the copper mineralization below the vertical depth of 150 m achieved in Phase 1 and to better outline the size of the newly defined mineralized structures.

Assay Results Summary

Drill Hole Structure From
(m)
To
(m)
Interval
(m)
True
width
(m)
Cu % Ag
g/t
LC2014dd03 SS1 50.50 50.70 0.20 0.19 1.5 0
LC2014dd04 SS2 56.20 60.65 4.45 3.64 0.7 3
and incl. 57.38 58.95 1.57 1.29 1.7 8
and incl. 57.38 57.48 0.10 0.08 8.2 48
and incl. 58.60 58.95 0.35 0.29 4.9 19
SS3 78.90 80.85 2.85 2.47 0.4 3
and incl. 78.90 79.20 0.30 0.26 3.6 20
LC2014dd05 SS1 44.50 45.75 1.25 0.93 4.9 6
and incl. 45.15 45.75 0.60 0.44 4.6 4
and incl. 45.25 45.75 0.50 0.37 12.1 1
SS2 56.15 60.70 4.55 3.73 3.0 17
and incl. 59.40 59.55 0.15 0.12 0.7 298
and incl. 59.40 60.7 1.30 1.06 9.5 35
LC2014dd06 SS1 9.20 17.20 8.00 6.47 0.5 2
and incl. 9.20 10.15 0.95 0.77 1.4 3
SS2 37.80 38.20 0.40 0.35 5.5 138
LC2014dd07 SS0 13.85 17.70 3.85 3.70 0.6 6
and incl. 16.20 17.15 0.95 0.91 2.0 20
LC2014dd09 SS1 104.60 116.80 12.20 10.57 1.4 4
and incl. 111.80 116.80 5.00 4.30 3.2 14
and incl. 111.80 113.15 1.35 1.17 6.4 18
SS2 116.8 126.7 9.9 8.57 0.5 3
and incl. 120.15 120.75 0.60 0.52 2.9 18
and incl. 120.15 121.9 1.75 1.5 1.2 7
LC2014dd10 SS1 61.10 71.90 10.8 10.32 1.4 5
and incl. 66.60 69.25 2.65 2.54 3.0 12
and incl. 67.85 69.25 1.40 1.34 4.4 16
and incl. 70.35 70.60 0.25 0.24 5.7 21
SS2 84.10 84.90 0.80 0.78 1.6 16
and incl. 84.50 84.90 0.40 0.40 2.8 29
SS3 111.05 126.9 15.85 15.37 0.2 1
LC2014s11 SS0 16.75 19.60 2.85 2.47 1.5 7
and incl. 17.45 18.85 1.40 1.21 2.7 11
SS1 35.4 43.1 7.70 6.70 0.3 8
and incl. 42.60 43.10 0.50 0.43 1.4 60

Cores from the twelve holes were split and delivered in secure tagged bags, directly to the analytical facility for analysis, namely the laboratory of ALS Chemex de Mexico, located in Chihuahua City, Mexico. The samples were weighed, identified and photographed prior to sample preparation. All samples were analyzed by ME-MS41 for 51 elements, Ag-OG62 when Ag is greater than 100g/t, Cu-OG62 when copper is greater than 1% and Cu-AA07n to obtain the oxide portion of copper if necessary. Note that only visual evidence of mineralized zones was sent to the lab for assaying.

Drilled Geology

The area geology is characterized by limestone oriented 150° and dipping 80° to the south west affected by a metasomatic event resulting in the intrusion of several centimetric to metric copper bearing veins sub parallel to the general lithological trends.

The core drilled holes LC2014dd01, 07, 02 and 08 located in the north west sector of Las Cristinas, cut through a fine grained, dark and compact limestone. In the south east sector, the core drilled holes LC2014dd04, 09, 11, 05, 03, 06, 10, have cut thru a sequence of fine grained, dark gray and compact limestone followed by a pale gray, fine to medium grained limestone and by the clear limestone associated to the SS3 structure. The latter is compact, medium grained, recrystallized, with conglomeratic and calcareous sandstone bands and greenish bands caused by the presence of chlorite and epidote within fracture and in disseminate sections (propylitic alteration) related to the intrusion of multiple aplitic dikes.

A shear zone affects these lithologies showing parallel and discordant fracturing within which, stockwork, fine vein networks and fine breccias are observed. This system is filled with fine to medium grained calcite andsiderite bearing chalcopyrite, pyrite, arsenopyrite, tetrahedrite (Freibergite), covellite and hematite in fracture, disseminated and as small masses, sometimes stratiform and in small bands.

The sulphide zone is located under the stream level and there is an enrichment zone above, showing an augmentation of copper sulphide (bornite, covellite and chalcopyrite). An oxide zone of copper carbonate (malachite, azurite) and copper silicate (crisocola) with iron oxides (hematite and limonite) is present near the hill surface.

About Cyprium Mining Corporation

We operate solely in Northern Mexico where our senior management team. We only look for projects that have a potential for profitable production in the short-term and a large exploration potential. Cyprium is committed to maximizing the potential of projects by funding exploration programs mainly through cash flows generated by production instead of funding such programs strictly through equity offering thus limiting shareholder dilution. Cyprium prioritizes projects which are easily accessible and close to large urban centers. Cyprium owns 51% of Coyame Copper SA de CV ("Coyame Copper"), a Chihuahua, Mexico based mining exploration company and has an option to increase its stake in Coyame Copper to 70% for a consideration of US $1.2 million payable over a period of eighteen months following the exercise of the option. Coyame Copper's Las Cristinas Project consist of four adjacent exploration concessions (Las Cristinas, La Parrita, La Verde and La Lagrimosa) covering 684 hectares. Coyame Copper also owns production assets located outside the town of Coyame, Mexico.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The geological information of this release was verified by Jacques Marchand, P.Eng. P.Geo, and an independent Qualified Person.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated plans for developments of the Company and its mining projects".

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by the Company will be successful. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law. Investors should note that the Las Cristinas property has no established mineral resources or mineral reserves as defined by NI 43-101. Although Cyprium Mining has made an initial production decision based on historical production records and the results of the recent sampling, a feasibility study has not been completed and there is no certainty that the proposed operation will be economically or technically viable. The completion of each phase of drilling is contingent on the successful completion of the previous one.

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