Summa Silver Corp. (“Summa” or the “Company”) (CSE:SSVR) is pleased to provide an update on the high grade Hughes silver-gold property in central Nevada where on going data review is uncovering the compelling potential of the property. In addition, the Board of Directors has appointed Galen McNamara to Chief Executive Officer (the “CEO”) of the Company.
Key Hughes Property Highlights
- Prolific high grade past producing silver-gold mine: The property features the Belmont Mine, one of the most prolific silver producers in the United States between 1903 and 1929. The mine is reported to have produced 36.7M oz of silver and 428K oz of gold from 2.1M tons of rock¹.
- Un-tapped opportunity with “Juice left to Squeeze”: The mine has remained inactive since commercial production ceased in 1929 due to heavily depressed metal prices. No modern assessment of remaining potential has ever been completed. Preliminary 3D modeling of the veins shows a number of high potential walk-up targets (see attached figures).
- Strong potential for new discoveries: The property features a 5-km strike extension of the famous Tonopah mining district where preliminary exploration completed by a past operator in the late 1980’s uncovered new mineralized zones and extensive hydrothermal alteration, but underpowered drilling equipment and slashed budgets prevented the potential realization of a significant new discovery.
- Excellent Infrastructure: US highways 6 and 95 cross the property just outside the town of Tonopah, Nevada.
- Rich mining history in the region: Known as the Queen of the Silver Camps, the Tonopah mining district is one of the great American mining camps that helped shape the identity of the United States in the early 20th century.
Galen McNamara, incoming CEO of the Company, stated:
“I am now excited to join the Company for what I believe to be a watershed opportunity for all shareholders. The Hughes property represents a very rare opportunity in the mining business, and we are preparing a fast paced exploration program for this summer as interest in precious metals is expected to continue during the on-going global financial situation.”
The Hughes Property
The Hughes property is located just outside of Tonopah, Nevada. Named after former owner and American folk hero Howard Hughes, the property features the eastern portion of the Tonopah mining district. It consists of patented and un-patented mining claims totalling 2,547 acres. Available historical data show that the property contains dozens of mineralized zones consisting of low to intermediate sulfidation epithermal quartz-calcite veins, stockworks and breccias hosted in intermediate and felsic volcanic rocks. The most significant past-producer on the property is the Belmont Mine which is reported to have produced 36.7 million ounces of silver and 428 thousand ounces of gold from 2.1 million tons of rock with veins as wide as 15m¹. Detailed historic mine plans are available for the Belmont Mine, but no drill hole data is known to exist.
Furthermore, the property extends five kilometres east along strike from the Belmont Mine into an area of little to no exploration. Small scale mining in 1914 on only one level in the Mizpah Extension Mine approximately 300m below surface and 350m east of the Belmont Mine workings is reported to have encountered grades between 225 g/t Ag equivalent over 1.2m and 7,907 g/t Ag equivalent over 0.8m². To the Company’s knowledge, these veins have never been drilled.
Approximately 1,000m further east from the Mizpah Extension Mine workings, preliminary and limited exploration work completed by Echo Bay Mines in 1989 identified significant precious metals mineralization and extensive hydrothermal alteration. The best result, intersected in hole ET-7, included 0.9m of 1,587 g/t Ag equivalent beginning 512m downhole³.
Finally, an additional 1,700m further east from ET-7, hole ET-14 intersected nearly continuous moderate to very strong epithermal style hydrothermal alteration over 180m beginning approximately 60m downhole. The hole was terminated in the same volcanic lithology known to host the Tonopah epithermal vein zones. In ET-14 the lithology was described as showing strong argillic alteration with 1-3% disseminated pyrite. To the Company’s knowledge, no follow up exploration was ever completed.
The Company is finalizing targets for a summer drilling and exploration program. In Nevada, mining has been declared an essential business and mining companies have been directed to adopt strict social distancing measures throughout operations.
Galen McNamara has been appointed CEO of the Company. In connection with the appointment, Hani Zabaneh has stepped down as CEO but remains on the Board of Directors. The Company thanks Mr. Zabaneh for his work as CEO.
Mr. McNamara is an entrepreneur and geologist who has been involved in the resource industry since 2007. He shared the 2018 PDAC Bill Dennis “Prospector of the Year” Award and 2016 Mines and Money Exploration Award for his work on the Arrow uranium deposit. In 2014, Mr McNamara co founded Pioneer Exploration Consultants Ltd a successful exploration consulting business, and Pioneer Aerial Surveys Ltd, a company focused on developing UAV borne geophysical surveys. Prior to that, he managed surface exploration at what is now SSR Mining’s Seabee Gold Operation where he worked on the early drill development of the currently producing Santoy Gap gold deposit. Mr McNamara holds Bachelor’s and Master’s degrees in geology from Laurentian University.
The Company is also pleased to announce that a new website is now open at www.summasilver.com.
Stock Option Grant
The Board of Directors has approved the grant of 2,185,000 incentive stock options to directors, officers and consultants of the Company. The options vest immediately and are exercisable at a price of $0.25 for a period of 60 months.
Galen McNamara, P. Geo. and CEO is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Galen McNamara, Chief Executive Officer
¹Production of the Tonopah Belmont Development Company, 1903-1932, Nevada Bureau of Mines Report No. 48400131
²Tonopah Mining Company of Nevada Records, Nevada Bureau of Mines Report No. 48400017 (Note: Ag equivalent calculated using 80:1 Au/Ag ratio)
³1989 Drill Logs, East Tonopah Project, Echo Bay Exploration (Note: True width is unknown)