Arizona Silver Exploration Inc (CVE:AZS) shares rocketed as it revealed it had acquired a new property in Mohave County, Arizona, which was once the site of an operating gold mine.
The county is the home of the Oatman mining district, which produced over 2 million ounces of gold from high-grade veins via underground mining in the early 1900s.
READ THE BIG PICTURE: Arizona Silver Exploration hoping to hold two aces down in Arizona
Northern Vertex Mining Corp (CVE:NEE) has the Moss Mine open pit heap leach operation and Para Resources (CVE:PBR) has the Gold Road underground mine and agitation leach operation 6 miles and 10 miles away from Arizona's new ground.
Arizona Silver revealed it had struck a lease with option to purchase on 11 unpatented lode mining claims that cover a majority of the old workings and potential strike extension of the former operating Arabian-Philadelphia mine.
It has also staked three further mining claims to cover the southern strike extension that was not covered by the leased claim group.
The initial lease payment has been made and together, the firm has 2.29 km of strike length along the mineralized fault.
Highlights of the Philadelphia property:
- Past production indicates gold grades ranged from 10 to 27 gpt (grams per ton) gold
- Historic silver grades in production shaft average 420 gpt silver
- Historic gold grades in production shaft average 15.5 gpt gold, for a combined gold equivalent grade of 16.63 gpt gold equivalent.
- Site is readily accessible and initial drilling will be conducted less than 100 metres from paved road access.
- Water will be provided from a water well on site
- Samples have been taken on new targets on the 280 acres with results expected shortly
- Drill permitting is underway with the US BLM and the State of Arizona
Arizona says the current drill plan is for a fence of five to six reverse circulation (RC) holes between the Philadelphia No 1 and Philadelphia No 2 shafts to test the continuity of the high-grade vein between the two, down to a depth of about 150 meters.
If this is successful, additional drilling will be needed, mostly with core, to continue to test the strike and dip extensions of the vein.
Shares in Toronto added over 30% to $0.15.
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