U.S. Precious Metals Announces Proven Gold, Silver and Copper Reserves Found in Mexican Mining Concessionadmin
U.S. Precious Metals, Inc., CEO and Chairman of the Board, M. Jack Kugler, announced that the results of the drilling campaign initiated in February 2008, have determined that there are proven and probable reserves in USPR’s mining concession in Southern Michoacan, Mexico. Mr. Kugler stated that he is extremely pleased with the results thus far, and is quite optimistic as the drilling campaign continues.
Applied Minerals, hired by USPR to provide an NI 43-101 Compliant Ore Reserve Report, has indicated that there is sufficient drill and assay information to provide a proven reserve figure for the drilling completed thus far. The veins represent an estimated 5-acre area of the 42,000-acre concession. Several other veins have been identified on the concession and are targeted for drilling.
The veins currently referred to as La Sabila Veins 1 and 2 in Applied Minerals’ Ore Reserve Report have dimensions at the surface of 200 feet long, 400 feet deep and 9.4 feet wide for Vein 1 and 200 feet long, 400 feet deep and 9.4 feet wide for Vein 2, based on data collected from 8 drill holes. A proven reserve of 199,200 tons has been calculated for these two veins. Assays of Vein 1 taken in hole 5 and hole 6 give a weighted average of 0.394 opt gold, 1.22 opt silver and 0.576% copper. Assays of Vein 2 taken in hole 5 and hole 6 give a weighted average of 0.171 opt gold, 1.06 opt silver and 1.08% copper. The vein in hole 3 appears to be the same vein system from the proven reserve found between holes 5 and 6. Currently, La Sabila Veins 1 and 2 remain open on all three sides.
Vein 1 Proven reserve calculations: (200′ x 400′ x 9.4′) (0.15 tons/ft3) = 112,800 tons 112,800 tons @ 0.394 opt Au = 44,443 oz 112,800 tons @ 1.22 opt Ag = 137,616 oz
112,800 tons @ 0.576 % Cu = 650 tons
Vein 2 Proven reserve calculations: (200′ x 400′ x 7.2′) (0.15 tons/ft3) = 86,400 tons 86,400 tons @ 0.171 opt Au = 14,774 oz 86,400 tons @ 1.06 opt Ag = 91,584 oz
86,400 tons @ 1.08 % Cu = 933 tons
Total Proven reserves: 199,200 tons 59,217 oz Au x $755.70/oz = $44,750,286 229,200 oz Ag x $10.75/oz = $2,463,900 1583 tons Cu x $6280/ton = $9,941,240
Total = $57,155,426
Below is a probable ore resource calculation (of the same vein system) as it extends to the northeast and southwest of holes 5 and 6. The extension of the vein systems on strike and down dip adds another $312,720,205 to the resource estimate. The depth of Vein 1 and 2 has not been determined and the above calculations are based on what we have discovered thus far. Veins 1 and 2 could be considerably deeper than our observations.
Vein 1 Probable resource calculations: (1000′ x 400′ x 10′) (0.15 tons/ft3) =600,000 tons 600,000 tons @ 0.394 opt Au = 236,400 oz 600,000 tons @ 1.22 opt Ag = 732,000 oz
600,000 tons @ 0.576 % Cu = 3,456 tons
Vein 2 Probable resource calculations: (1000′x 400′x 7.5′) (0.15 tons/ft3) =327,038 tons 327,038 tons @ 0.171 opt Au = 55,923 oz 327,038 tons @ 1.06 opt Ag = 346,660 oz
327,038 tons @ 1.08% Cu = 3,532 tons
Total probable resource: 763,088 tons 292,323 oz Au x $755.70/oz = $263,169,500 1,078,600 oz Ag x $10.75/oz = $11,594,950 6,988 tons Cu x $6280/ton = $43,846,640
Total = $318,611,090
Drilling in hole #5 indicates a series of 3 or 4 parallel veins that lie to the northwest and 1 parallel vein to the southeast of veins 1 and 2. These veins have not been seen nor mapped at the surface. These additional veins have been intersected in drill holes 8 and 9. The vein in hole 3 is expected to be intersected in hole 9.
U.S. Precious Metals, Inc. is a gold exploration company operating in Mexico through its wholly owned Mexican subsidiary, U.S. Precious Metals de Mexico. U.S. Precious Metal’s common stock is quoted on the OTC Bulletin Board under the symbol “USPR.”