Our wholly-owned Candelaria project is located in the Candelaria Hills in west central Nevada. Candelaria is approximately 55 miles south of Hawthorne and approximately five miles west of Highway 95, which connects Reno to Las Vegas. Access to Candelaria is by paved road from Highway 95. The mine site is connected to the local power grid and has water wells and pumping equipment in place.
The Candelaria District developed into one of the richest silver districts in the state of Nevada, following discovery of high grade veins in 1864. From 1864 until 1954, the property produced 22 million ounces of silver. The property was acquired by Occidental Minerals and later Nerco Minerals, who built a processing facility and operated the mine from 1980 until 1989. During that time, they produced over 33 million ounces of silver. Kinross Candelaria Mining Company, an indirect wholly-owned subsidiary of Kinross Gold, purchased the Candelaria mine in 1994 and operated the mine until January 1999. Kinross produced over 13 million ounces of silver, bringing the total historical production for the property to over 68 million ounces of silver.
Mineralization within the district is confined to the Candelaria Shear. High grade veins form along contacts of intrusive dikes within the host volcanics. Lower grade, bulk tonnage mineralization extends as a halo from the veins into the surrounding shear zone. The main ore bodies vary in width from 24 meters to 37 meters averaging 109 to 128 grams of silver per ton.
On January 16, 2017, we entered into an option agreement with Silver One Resources Inc., pursuant to which Silver One was granted an option to acquire a 100% interest in the Candelaria project. In order to exercise the option, Silver One was required to issue to us $1.0 million in Silver One shares on January 20, 2017, and will be required to issue to us an additional three annual instalments of $1.0 million in Silver One shares and assume the reclamation bond on the property.
This page contains forward-looking statements. Please see the following link: Legal.