Silver Scott Mines, Inc. (Pink Sheets: SILS) is pleased to announce the Company has acquired the Quitovac property mining concessions. The Quitovac concessions have been an historic gold mining property.
The project is an open pit heap leach type deposit where the Company expects low capex ($1.1M) and extraction costs ($400 /oz). There is an existing historic resource in excess of 120,000 ounces at 1.35 g/t gold. Grades on average in excess of 1 g/t are present with some impressive intervals such as 20m of over 7 g/t gold.
Silver Scott intends to continue to explore the property with our geologists expecting the project resource to grow as exploration proceeds, up to 400,000 ounces. Over the next eighteen months, the Company plans to increase the resource and prep the property for production.
The Quitovac property is positioned in a newly emerging gold region within northwest Sonora State, Mexico; an area similar in structural style to the Basin and Range Province of the southwestern United States. The Quitovac property is located approximately 45 kilometres south from the town of Sonoyta near the Arizona/Sonora boundary and consists of 13 contiguous land titles (both exploitation and exploration), covering 2,484 hectares.
Silver Scott purchased the Quitovac property from Cuesta Del Cobre, S.A. de C. V. for $300,000 cash plus a value added tax of 16% and a Net Smelter Return Royalty of 10% for the first 100,000 oz and 6% of further production.
John Ryan, CEO of Silver Scott Mines, Inc. commented, “We are excited with the addition of the Quitovac property in that it brings to Silver Scott its largest single resource to date. Silver Scott’s goal is to push ahead with exploration and drilling to further increase the known resource. We believe this resource will provide highly profitable production for the next several years at current gold prices. We feel our entry into this project was both timely and at an excellent buy-in price.”
Mel Hedrick, COO of Silver Scott Mines, Inc. also remarked, “Quitovac has been a very productive gold mining asset in the past having produced in excess of 100,000 ounces under previous operators. The mine is located in ‘elephant country,’ with numerous known mineral resources nearby, and additional major discoveries being made in the nearby Herradura Mine Complex.”
Additional information on the projects and the management and consulting team will be forthcoming in future news releases.
|For further information please contact:|
|Silver Scott Mines, Inc.|
|13 Bow Circle #147|
|Hilton Head, SC 29928|
The source of this news release is Silver Scott Mines, Inc. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.
Tagged with: (Pink Sheets: SILS) • Business • Companies • Gold • Gold mining • Historic Gold Mine • Industry • Markets • Mining • Mining and Drilling • Precious metal • Quitovac • Securities Exchange Act of 1934 • Silver Scott Mines Inc. • Sonoyta
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