Milner Consolidated Silver Mines Ltd.

July 07, 2008 16:29 ET

Milner Consolidated Silver Mines Ltd. Outlines a Mineralized Corridor at its San Lucas Project in Mexico

PENETANG, ONTARIO--(Marketwire - July 7, 2008) - MILNER CONSOLIDATED SILVER MINES LTD. (Milner) (TSX VENTURE:MCA) is pleased to announce positive results from its ongoing exploration program on its San Lucas Exploration Concession. The concession encompasses an area of 1,569 hectares and is located in the Sierra Madre Occidental porphyry copper belt of Northern Mexico. The concession is owned 100% by Milner's wholly-owned Mexican subsidiary company (Minera Milner S.A. de C.V.).

Most of the mineralization found to-date is located in a copper-gold porphyry-skarn system and is possibly fault controlled.

To-date, in excess of 20 mineral occurrences have been located on the concession. Most of these are aligned along a pronounced corridor trending in a N30 degrees E direction. The corridor has to-date been traced over a length of approximately 2 kilometers and is open both to the north and to the south.

Primary copper mineralization consists of chalcopyrite and bornite. Secondary copper minerals include malachite and azurite and possibly secondary bornite replacing pyrite locally. Lead-zinc mineralization, along with copper and gold-silver values also occurs towards the southern end of the corridor. The lead-zinc mineralization consists of galena, sphalerite and secondary lead-zinc minerals including cerrusite and hemimorphite. Isolated small lenses of fairly massive magnetite occur locally in the mineralized zones. The mineral occurrences along the corridor are all skarn hosted and disseminated specular hematite is a ubiquitous accessory mineral in the skarn mineralization.

Outside of the corridor, low grade gold values (up to 1.51 grams per tonne) occur associated with a series of quartz veins hosted in porphyry.

To-date, in excess of 100 selected grab samples taken from the mineralized occurrences have been submitted to the A.L.S. Chemex Laboratory in Vancouver, British Columbia. These grab samples were collected primarily to determine if significant gold-silver values are associated with the base metal (copper-lead-zinc) mineralization.

The assay results of the samples taken to date are encouraging with gold values ranging from a fraction of a gram per tonne to a peak value of 39 grams per tonne. Silver values range from 0.3 grams per tonne to a peak value of 218 grams per tonne. The copper content ranges between 0.595% to a peak value of 9.02% Selected grab samples from the lead-zinc occurrences assayed from 6.3% to in excess of 20% lead and from 19.15% to 27.6% zinc.

It is still too early in the exploration program to draw conclusions as to the potential of the mineralization discovered to-date. Approximately 60% of the concession area has been covered to-date by a widely spaced preliminary geochemical soil sampling program and preliminary prospecting. The remainder of the concession has still not been examined even in a preliminary way but work is ongoing.

Exploration activity in the general area has increased in the last few months and road access in the area is much improved as a result of these activities. One of Mexico's largest mining companies (Industrias Penoles Mx) has recently constructed and is currently maintaining a drill access road to within one kilometer of the San Lucas concession. Penoles has moved in two diamond drill machines with considerable depth capacity and is currently drilling deep holes to explore a copper-gold porphyry-skarn system. Penoles' drill pads have been constructed as close as one kilometer from the boundary of Milner's San Lucas concession. Another company (Precobre S.A. de C.V.), which is a joint venture company formed by Codelco and Penoles is also drilling porphyry-skarn systems close to Milner's San Lucas concession. Both of these companies are targeting geological settings with the potential to host large porphyry copper deposits.

As required by the National Instrument 43-101, Milner's designated Qualified Person for the supervision of exploration projects in Mexico is E.W. Bazinet, P. Eng. Ontario, President of Minera Milner S.A. de C.V., who has verified the technical information reported in this news release.

About Milner Consolidated Silver Mines Ltd.

Milner Consolidated Silver Mines Ltd. is a junior resource company, quoted for trading on the TSX Venture Exchange under the symbol MCA. There are currently 7,438,506 shares issued and outstanding in Milner Consolidated Silver Mines Ltd.

On Behalf of the Board,

D.J. Bazinet, President

Shares Outstanding: 7,438,506

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Milner Consolidated Silver Mines Ltd.
    Deborah Bazinet
    (705) 533-3430
    (705) 533-1521 (FAX)