The Silver Cliff property lies within the historic Hardscrabble Silver District, and consists of 96 lode claims where high grade silver, gold and base metal production came from numerous mines during the period 1878 to 1894. It is located 44 miles WSW of Pueblo Colorado and has year-around access by paved road. The property underwent substantial exploration between 1967 and 1984 for the purpose of defining mineral inventories. The major explorers were Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals.
Silver Cliff is thought to overlie a large caldera and porphyry system which increases the prospect’s potential to host a number of deposits from both precious metals to base metals. This has been demonstrated in the mineralogy and grade historically extracted from numerous underground mining operations dating back to the late 1800s and early 1900s.
The Company has an exploration target of 40 to 50 million ounces of silver.
NI 43 101 Current resources, effective April 15, 2018 are:
Indicated Resources of 2.1Mt grading 84 g/t Ag for 5.6M oz Ag
Inferred Resources of 3.2Mt grading 70 g/t Ag for 7.1M oz Ag
Multiple exploration targets have been delineated for drilling.
Past drilling at Silver Cliff was designed to test only the flat-lying shallow mineralized bodies with vertical holes but not the High-angle mineralized structures which are the ultimate controls for the emplacement of these mineralized bodies. This indicates that follow-up drill programs need to include angle holes which will cut these mineralized structures, potentially upgrading the deposits.
Drilling in the 1980s by Tenneco resulted in a historical pre-feasibility study which formed the company’s decision to put the property into production. Known historical silver grades range from below detection to a high of 2,125 g/t (68 o/t) Ag over 13.4 metres. Known historical gold grades range from below detection to a high of 9.06 g/t (0.29 o/t) Au over 1.2 metres.
Many of the historic holes had been drilled for Tenneco Minerals at the KSR between 1987 and 1990, following which the company completed a feasibility study for open pit mining of silver and announced plans to construct a $35,000,000 milling operation at Silver Cliff. Shortly thereafter, the parent company, Tenneco was sold and the new owners decided to divest their mineral interests and the decision was reversed in 1991.
The fall of 2016 drilling shows that the silver mineralization (blue grey) is hosted predominantly by a gently-dipping unit of highly altered rhyolite tuff that was deposited during volcanic activity in the Silver Cliff caldera.The Kate Silver Resource (the “KSR”) at this juncture appears to be the result of extensive alteration by hot hydrothermal silver/lead/zinc-bearing fluids that ascended up along deep seated faults and related fractures. These rhyolite tuff units can be found over a large lateral extent are susceptible to extensive alteration by metal rich hydrothermal solutions and maybe the greatest promise for the KSR in the other deeper unexplored stacked horizons. These may be found associated with high grade epithermal veins that could underlie the KSR.
The geology shows that the silver mineralization (blue-grey mineralization) is hosted predominantly by a gently-dipping, silicified carbonate reef that formed during a volcanic hiatus. The Kate Silver Resource at this juncture appears to be the result of simple carbonate replacement by silica-rich, silver/lead/zinc-bearing fluids adjacent to interpreted deep seated epithermal veins. These carbonate rock systems replaced by silicification-associated resources are commonly found over large lateral extents and the greatest promise for the Kate Silver Resource may eventually lie in undiscovered stacked horizons, in combination with high-grade epithermal veins that may underlie the Kate Silver Resource.