Western Silver Corporation's primary focus is on exploration in the State of Zacatecas, Mexico where the company and its' partner Teck Corporation, discovered the world-class San Nicolas copper-zinc-gold and silver deposit in 1997. Plans its' name from Western Copper to more accurately reflect current focus of company's efforts.
Western
Silver Corporation. WTC
(TSE)
WTC published press releases so fast and furious starting in 1998 that the Old Prospector just couldn't keep up. The best way to keep up with data on the exciting San Nicolas VMS Deposit is to go over to Western Copper's own website. There you will find maps, sections, drill results, 3-D block diagrams and all the other latest goodies. They also have information on Peñasquito, San Jeronimo and their other Mexican Projects.
Recent news includes a financing by Teck where Teck agreed to purchase 1,141,799 units at $1.93 to yield $2.2 M. Teck did this and now owns 2,293,216 shares of WCH representing 13.36% of the outstanding shares.
Press Release 6Aug99
GCN #63 31Mar99San Nicolas VMS Deposit, Zacatecas:
Current status as of March, 2002 is that a positive bankable feasibility study has been tabled. This study was based around a plant to treat 15,500 tonnes of ore per day over a 12 year mine life that would produce 2.1 billion pounds of Zn, 1.4 billion pounds of Cu, 171,000 oz Au and 18 million oz of Ag. Sensitivity analysis shows metal prices and freight costs to be critical factors in the project's economics. Weak Zn prices are the Achilles heel at the moment. Western's interest in San Nicolas is presently 21% and will range from 18.75% to 29.75% once a production decision is reached depending on the various options available to the operator Teck-Cominco. (Note: the 2001 feasibility study was based on 65 million tonnes at 1.32% Cu, 2.04% Pb, 0.53 gpt Au and 32.1 gpt Ag with 170 meters of overburden to pre-strip).
San Nicolas Preliminary Geologic Resource (January, 2001)
Density Tonnes Au Ag Cu Zn
(t/m3) (1000's) (g/t) (g/t) (%) (%)
Upper Massive Sulfide
High-grade Zinc Zone: 4.0 17,316 1.3 75.3 0.8 6.1
Low-grade Zinc Zone: 4.2 17,496 0.6 22.8 0.7 1.7
Copper Zone: 4.1 42,867 0.1 12.3 1.9 0.5
Subtotal: 77,679 0.5 28.7 1.4 2.0
Lower Massive Sulfide
Copper Zone: 4.1 9,745 0.2 11.8 1.6 0.8
Stringer Zone: 2.8 12,099 0.0 1.6 1.1 0.1
Subtotal: 21,844 0.1 6.1 1.3 0.4
TOTAL: (99.5 million tonnes) 99,523 0.4 23.7 1.4 1.6
The upper 77.7 million tonnes is considered open-pittable with a preliminary overall waste-to-ore ratio of 4.3 to 1, including the initial removal of approximately 67 million tonnes of overburden. The 21.8 million tonne lower copper zone is open to depth in a southwesterly direction. Teck as operator initiated a feasibility study which will include an additional 10,000 meters of in-fill drilling (to be completed during August 2000), orebody modeling and pilot plant metallurgical test work to determine anticipated metal recoveries and a final pit design. The feasibility study is scheduled to be completed in the first half of the year 2001. Production could commence by the end of year 2002, which is less than five years from initial discovery.
Exploration of the joint venture area is still at an early stage; the majority of work to date has focused on the San Nicolas deposit. Exploration work during 1999 consisted primarily of geologic mapping and ground geophysical surveys (gravity and induced polarization).Tentative Project Schedule for San Nicolas
Definition drilling, bulk sample Aug 2000
Pilot plant metallurgical testing Dec 2000
Environmental Impact Study March 2001
Feasibility Study March 2001
Permits and financing Sept 2001
Pit development and plant construction Sept 2001
Mechanical completion, start ramp up Sept 2002
SYNOPSIS: On November 10, 1997 Western Copper and Teck Corporation made a significant Massive Sulfide discovery on its 225 square km. El Salvador/Tamara Join Venture project located 45 kilometers southeast of the city of Zacatecas, Mexico. The discovery was made on claims optioned from Luismin S.A. de C.V. The diamond drill hole (SAL-25) intersected a total of 176.2 meters (577 feet) of massive sulfides containing significant values of zinc, copper, gold and silver. This intersection of massive sulfides is believed to be one of the longest intersections of continuous sulfides ever drilled in North America. The diamond drill hole was located in the center of an Induced Polarization (I.P.) anomaly having a central core surface dimension of 500 meters by 500 meters (1640 feet by 1640 feet). Four diamond drill holes, each located 200 meters from diamond drill hole SAL 25 in an north/south and east/west direction, are currently being drilled to establish the initial size of the deposit. The company believes the San Nicolas discovery has the potential to become a world class zinc, copper, gold and silver deposit. As of 10/28/98 the preliminary reserve estimate for an open-pit stands at 72,000,000 tonnes averaging 1.35% Cu, 2.27% Zn, 0.53 gpt Au and 30 gpt Ag to a depth of 400 m with a life of mine stripping ratio of less than 5:1 waste to ore (MEG Luncheon Talk Abstract)
WOW! From (m) To (m) Intercept Meters Au g/t Ag g/t Cu % Zn % SAL-25 207.1 235.5 28.4 1.20 47.6 0.64 5.53 SAL-25 235.5 313.5 78.0 0.73 18.2 0.34 0.93 SAL-25 313.5 368.3 54.8 0.22 9.2 0.76 0.38 * Insignificant Pb values were encountered.
The El Salvador/Tamara project is a 55/45 % joint venture between Teck Corporation and Western Copper with Teck acting as operator. Teck can earn an additional 10% in the venture by arranging all of the capital for the project and can purchase an additional 5% of Western’s interest based on the Net Present Value of the project discounted at 15% using 5 year average metal prices. Luismin S.A. de C.V. may elect to participate as to 25% after feasibility or retain a 15% net carried interest.
HISTORICAL PERSPECTIVE: Cu-oxide and VMS property 45/55 JV w/Teck Resources as operator Over 22,000 ha. secured through options or staked claims. The Teck/Western El Salvador Project is located southeast of the city of Zacatecas, in the State of Zacatecas, Mexico and covers a 225 square kilometer area. Each party is responsible for its own funding of the El Salvador Project based on the initial interest of 55% Teck and 45% Western. Teck has the option to earn an additional 10% interest by arranging 100% of production financing. Teck may also purchase from Western, upon completion of feasibility, an additional 5% based on the Net Present Value of the Project. During December 1999 twelve additional claims immediately north of San Nicolas were acquired through the lottery bidding process. The joint venture now controls almost all key ground in the area of interest.
Detailed studies at San Nicolas completed during 1999 provided proprietary data on the geologic setting, geochemical signature and geophysical response of the massive sulfide orebody. This information has been extremely important in identifying, prioritizing and evaluating other massive sulfide targets, and will increase our probability of making other discoveries. Approximately 40% of the year 2000 budget of C$1.6 million will be used to complete 4000 meters of drilling. The tendency for massive sulfide deposits to occur in clusters is well documented, and this year's extensive and systematic drill program should result in additional discoveries.
In 1996 diamond drilling discovered sulfide mineralization approximately 75 m beneath extensive near-surface Cu-oxide mineralization (29 of 35 holes). The sulfide ore ran 16.75% Zn, 2.07% Cu, 1.53% Pb, 3.68 g/t Au and 213 g/t Ag over a true thickness of 1.6 m. Four new holes hit lower grades and similar <2.0m thicknesses and extended the flat-lying massive sulfide horizon 275 m to west and 50m to north. A $1M budget for 1997 by Teck will include a Digem airborne geophysical study to begin about January 20th and cover 250 sq km (should be done in March). Detailed ground geophysics and more DDH is planned to begin in January, 1997. The 25 DDH to date indicate that the volcanic strata is flat lying or slightly domed and the massive and attendant stringer sulphides lie near the top of an intercalated andesite/rhyolite volcanic pile capped by porphyritic andesite. SAL-12 intersected 13.3 m of massive sulfide mineralization from 73.4 to 86.7m with the following average grades: Au 1.98 gpt; Ag 196.1 gpt; Cu 1.04%; Pb 1.06% and Zn 5.99%.Massive to semi-massive sulfides were intersected in diamond drill hole SAL-25 on Nov. 10, 1997. The sulfide intersection, which started at approximately 205 meters, was continuous to 368 meters, a distance of 161.2 meters. Although SAL-25 was drilled vertically, no indication of true width can be given at this time. The zone is believed to be flat lying, similar to that previously encountered elsewhere on the property and may contain values in copper, zinc, lead, gold and silver. Assays are pending and should be available within two weeks (i.e. end of November). Drill hole SAL-25 is located on claims optioned from Luismin, S.A. de C.V., which has the right to participate with the Teck/Western joint venture, as to 25%, if the property is taken to commercial production. The Luismin participation falls to 15% if it does not contribute its share of production
SAL-25 stopped in sulfides at 368.3 meters. Plans were to complete this drilling through to the footwall. Drill hole SAL-24, located some 200m S of SAL-25, will also be completed. Both of these holes are located within an IP anomaly 500 m by 500 m, in plan which is the objective of future drilling to determine the geometry and grade of this mineralized zone. Map of drill hole locations as well as two drill sections. Looks like some structural complexity is entering into the picture. Information and tabulated drill results through hole 43. This thing keep getting better and better. the rest is history.GCN #41 27Feb98
GCN #40 26Feb98
Press release 5Feb98 (Drill results from SAL 33)
GCN #8 13Jan98 (Tabulated results from SAL 24, 25, 29, 30, 31 and 32)
News Release 21Nov97
News Release 10Nov97
GCN #218 13Nov97
News Release 20Feb97
GCN #26 6Feb97
News Release 13Jan97
GCN #236 6Dec96
Corporate News Release
Annual Reports
Randol at Vancouver '96 exhibitor
News Release 10/28/96
NMN v82#28 09/09/96El Salvador Project, Zacatecas. The El Salvador Project, located 65 km SE of the city of Zacatecas, Mexico is a 55/45% joint venture between Teck and Western. The joint venture covers a 225 square kilometer area of interest ideally situated within a few km of two paved highways and electrical transmission lines. The project gained international attention in November 1997 when discovery hole SAL-25 intersected 175 m of massive sulfide mineralization in what is now known as the San Nicolas deposit. Since then over 100 additional core holes have defined a deposit with a preliminary geologic resource of 99.5 million tonnes. Located only 5 km NE of San Nicholas. This area includes Cerro Gordito where TAM-08 cut 12.8 m of 98 gpt Ag. and a second zone of 4.5m of 163 gpt Ag in jasperoids. Only 50 m from TAM-08 another hole intersected 32.6m running 230 gpt Ag in the same zone. Cerro Gordito remains open on the N and E. The joint venture management committee approved a 1999 budget of $1.7 million for exploration of the 225 square kilometer (87 square miles) El Salvador Joint Venture area. Ongoing gravity and IP surveys have identified a number of strong gravity and IP anomalies north and east of the San Nicolas orebody, several of which are coincident gravity and chargeability highs, characteristics present in the San Nicolas orebody. The initial 1,500 meter (4,920 feet) drill program, planned to begin the last week of May, will test at least five of these targets.
MBD January, 1999
NMN v82#47 01/20/97La Virgen property, Zacatecas. Located only 3.5 km N of El Salvador. This near-surface oxide property optioned from Minera Dolores Angustas and Anexas was drilled with an air-track rig. A 35-hole program found Cu in 29 holes and significant Au was found in over 3-9m intervals in 9 holes. Cu mineralization extends over an area 600m by 350 m and is from 3-30m thick. This was the start of San Nicolas, the chink in the wall.
NMN v82#47 01/20/97
Ramos Project, Zacatecas. In March 1999, Teck and Western formed a second joint venture, with terms similar to the El Salvador agreement, by pooling their respective claims around the El Salvador joint venture area. Teck contributed its lands to the south, east and
west of El Salvador totaling 46,470 hectares and Western contributed its interest in the Ramos ground to the north totaling 261,210 hectares. The large claim block was subsequently reduced to a total of approximately 235,000 hectares and the resulting claim group, including the El Salvador joint venture, covers an area up to 75 kilometers long and 40 kilometers wide. Teck has funded the first US$500,000 in exploration on the merged block in recognition of previous work by Western. A year 2000 Ramos exploration budget of C$1.4 million will be spent primarily on geologic mapping, ground geophysics and drilling. (WWWinfo Feb. 2001)Teck and Western have formed a new joint venture by merging their respective land positions adjacent to the 225 square kilometer (87 square miles) El Salvador joint venture area. Teck will contribute its lands to the south, east and west of El Salvador totaling 46,470 hectares (114,740 acres) and Western will contribute its interest in the Villa de Ramos ground to the north, totaling 261,210 hectares (645,000 acres) . The combined area of these lands is in excess of 3,000 square kilometers (1,158 square miles). The resulting land position, including the El Salvador joint venture area, represents a block of ground 75 kilometers (47 miles) in a north-south direction and up to 40 kilometers (25 miles) in an east-west direction. In recognition of Westerns prior expenditures, Teck will fund the first US$500,000 in exploration on the merged block. Thereafter funding will be on a Teck 55% - Western 45% basis. Teck and Western will have rights similar to those contained within the El Salvador joint venture agreement. We believe that the geology of this combined block of land is prospective for the discovery of massive sulfide deposits similar to San Nicolas and plan to explore several gravity anomalies which have recently been identified.
Press Release 02-99 6May99
Peñasquito Property, Zacatecas. Acquired 100% undivided interest in this property in March, 1998 from Kennecott. A detailed CSAMT (Controlled-Source Audio-Frequency Magnetotelluric) survey, core relogging and data integration provide support for bulk mineable mineralization in several areas in and around the Azul breccia pipe. A total of $6 million has been spent in exploration including 26,000 of drilling and extensive geophysics has been carried out on property to date. Engaged Kilborne Engineering to assess the economic potential of this proerty.
Chile Colorado - The mineralized zone has been intersected by 8 drill holes and has minimum dimensions of 400 m by 250 m by 150 m. CSAMT surveying suggests that mineralization may extend 100 - 200 m to the south and east. The shape of the anomaly supports the geophysical interpretation that mineralization is in the form of a chimney.
North Azul - Hole PN-11, drilled by Kennecott along the northern margin of the Azul breccia, intersected 297 m averaging 66 g/t silver and 2% combined lead-zinc. Our CSAMT results show that this hole was drilled into the contact zone of an intrusive which extends northwesterly for 400 - 600 meters and is at least 200 meters wide. Drilling is planned to determine if the entire contact around the intrusive is mineralized.
Other targets - Several CSAMT anomalies have been identified which have the same shape as the Chile Colorado anomaly, suggesting the presence of additional chimney style mineralization. One of these anomalies has a coincident geochemical anomaly. Data compilation and review, following completion of Western's initial nine hole drill program, indicate that the Chile Colorado Ag-Pb-Zn-Au mineralization may represent the southern lobe of a much larger system which extends north for 1,200 m through the Azul pipe into the North Azul area. Such a mineralized system, based on a few widely spaced drill holes, could contain up to 200 million tonnes averaging 0.3-0.5 g/t Au, 70-90 g/t Ag, and 2.0-3.0 % combined lead-zinc. Financing is col=mplete as of 25Feb02 and an 18 hole 6,000 meter core drilling program will commence at Chile-Colorado in mid-March. This combined with the previous 19 holes should be sufficient to provide a global resource estimate. See Western Copper website for detailsPress Release 25Feb02
San Jeronimo Property, Zacatecas. The 100% owned San Jeronimo prospect is located 20 kilometers south of the city of Zacatecas in the heart of a strongly mineralized zone known as the Faja de Plata. The Chilitos formation, a Jurassic to Cretaceous age complex of weakly metamorphosed submarine volcanic rocks which hosts the San Nicolas deposit, is exposed in an erosional window surrounded by post-mineral Tertiary rhyolites. Detailed mapping and sampling of the Loreto-Santa Maria epithermal vein system, which has been mapped over a strike length of 2,400 meters near the town of Minillas, has defined an exciting Fresnillo style Ag target.
Press release 15Oct99
WWWinfoKalajari/Geomex 6, Zacatecas. Kalahari has granted Western the right and option to acquire 51% of the Geomex No. 6 concessions Kalahari recently acquired. The concession is located in Central Mexico, 100 kilometers south of Real de Angeles. To earn this option Western must expend US $500,000 on the property over two years. As with the Kennecott/Western properties, Geomex No. 6 is within the Faja de Plata belt and contains a number of gravity anomalies. Western plans to complete an airborne survey of the area prior to exercising the work option. Initial 94,282 ha claim was reduced to three claim blocks totaling 37,174 ha. As of 23Sep99 Western has spent about $120,000 on exploring the property including acquisition costs and taxes. Work to date has consisted of limited ground recon and data compilation. Five permissive target areas have been selected on the basis of proximity to known mineralization and/or the presence of gravity highs. Geochem has been using Barringer SMX partial extraction technique.
Press Release (Kalahari) 23Sep99
WWWinfoFaja de Plata Project. Developed Strategic Alliance with Kennecott Exploration Company for exploration of properties in Zacatecas and San Luis Potosi. Kennecott took a private placement in Western to the tune of 250,000 shares at $10 each. Western committed to $1,000,000 annually in exploration on this agreement. Recently completed CSAMT survey identified 5 new anomalies and delineated possible new ore controls.
Kennecott Exploration Company ("Kennecott") and Western have terminated their Strategic Alliance in the Faja de Plata area of central Mexico ("Termination Agreement") effective May 5, 1999. Under the terms of the agreement, Kennecott surrendered its back-in rights on seven wholly owned Western properties (560,000 hectares or 1.38 million acres) and the requirement for Western to spend US$4.0 million on the properties over the next four years, in return for:
250,000 shares of Western common stock. Re-pricing of 250,000 share purchase warrants, so that each warrant may be exercised at anytime prior to March 12, 2001 at a price of $2.00 per share. A payment of US$50,000, due on or before August 1, 1999. Kennecott retains an uncapped royalty varying from 1% - 2% on all properties except Villa deRamos, where the royalty may be purchased by Western under the following terms:
a) One million U.S. dollars (US$1,000,000) per percentage point at any time on or before the second anniversary of the Termination Agreement or;
b) Two million U.S. dollars (US$2,000,000) per percentage point at any time after the second anniversary, but before the third anniversary of the Termination Agreement;
c) If any portion of the royalty is not purchased prior to the third anniversary of the Termination Agreement, Kennecott's right to receive a net smelter return royalty shall remain in full force and effect.Press Release 02-99 6May99
Randol Conference January, 1999
GCN #23 3Feb98
Press Release 02Feb98Nieves District Property, Zacatecas. Originally optioned a bunch of properties in the Faja de Plata land package from Kennecott. Recent DDH confirmed continuation of high-grade Ag values encountered by earlier KCC in RC drilling. Detailed geochem completed to scope out these zones. More drilling planned after geochem results are in. KCC staked an additional 150 sq km as protection subject to Western/KCC Agreement. Property was transferred to Quaterra Resources Ltd. for shares equivalent to Western's costs.
Press Release 02Feb98
GCN #201 20Oct97
