Overview of Gunman Zinc / Silver Project
* In December 2017, Cypress entered into an agreement Pasinex Resources Limited whereas Pasinex can earn up to an 80% interest in Cypress' Gunman Project. Total consideration to acquire the 80% interest is staged over four years and includes US$675,000 in cash payments and 4.8 million Pasinex common shares. In addition, Pasinex must incur minimum exploration expenditures totaling US$2,950,000 over the same four-year period.
Cypress holds a 100% interest in its approximately 1,100 acre Gunman Zinc-Silver Project located in White Pine County, northeast of Eureka, Nevada. Five RC drill programs totaling approx. 50,000 feet have been completed by Cypress on the Gunman Project with significant near surface grades up to 33% per ton zinc and up to 15.0 oz per ton silver over considerable widths encountered. Zinc could represent the next big base metal play due to ongoing demand growth and the closures of 3 major mines in Canada, Australia and Ireland and not enough supply coming on stream from new projects. Sentiment could shift towards zinc, with prices potentially rallying in anticipation of tightening supplies.
Video on Cypress Gunman Zinc-Silver Project, Nevada
Less than 20 miles east of the White Pine District is the Robinson District and the Ruth Pit (at one time, the largest copper producer in the world). Ten miles east of the Gunman Prospect is the Bald Mountain Gold Mine. The town of Carlin and the world-class mines of the Carlin Trend are located 60 miles to the north-northwest. The Cortez Gold Mine is approximately 50 miles west-northwest.
Past Exploration Results:
Twenty-four reverse circulation (RC) drill holes were completed at the Gunman Project in eastern White Pine County, Nevada in 2014. The drilling programs totaled approx. 7,000 feet and was directed at the main RH Zone located in the central portion of the property. Infill and delineation drilling within the main RH Zone intersected long intervals of strong dolomitic alteration containing abundant gossanous iron oxide zones. Assays from five foot interval samples within the oxide zone and adjacent fractured dolomitized limestone show spectacular zinc and silver mineralization.
The assays from the drilling within the RH Zone are summarized in tables 1, 2, and 3 below.
Table 1: June 2014 Phase 1 Drill Results for main RH Zinc-Silver Zone
|Hole ID||From (ft)||To (ft)||Interval (ft)||Ag (g/t)||Zn (%)|
Table 2: June 2014 Complete 5 Foot Interval Assays for a portion of Drill Hole GMRC-9
|Hole ID||From(ft)||To(ft)||sample weight (kg)||Ag g/t||Zn %|
Table 3: October 2014 Phase 2 Drill Results for main RH Zinc-Silver Zone
|Hole ID||From (ft)||To (ft)||Interval (ft)||Ag (g/t)||Zn (%)|
* NSV = no significant values.
* g/t = grams per metric tonne.
* True width lengths are estimated to be approximately 95% of downhole intervals.
* Detailed Notes on Chemex Assay Procedures Used: A basic aqua regia-ICP multi-element package was run on 50 gram splits from 250 gram master pulps. Intervals assaying >100 grams/tonne silver and/or 1% zinc were rerun using a complete aqua regia digestion followed by ICP-AES analysis. Intervals assaying greater than 30% zinc following complete aqua regia digestion were then re-assayed from a fresh 50 gram pulp using classical titration methods.
RH Zone Geologic Discussion
Evidence from both drilling and surface exposures of the RH Zone strongly suggests that the mineralization is structurally controlled and is focused within an envelope of hydrothermally altered, fractured and brecciated dolomite. Outcrop and drill data also indicate that the dolomite is of hydrothermal origin.
Data gathered during the 2014 Phase 1 and Phase 2 drill programs points strongly to base metal, precious metal veining within a focused zone of dolomite alteration, fracturing and brecciation forming within an active zone of faulting. Subsequent oxidation of the original poly metallic veining mineralization has produced significant down hole intervals of spectacular, silver rich, zinc and iron oxide gossans with local sulfide cast boxworks.
2014 Phase 2 Surface Sampling Program:
A systematic, detailed rock chip sampling program has been completed at the Gunman Project as the initial part of the 2014 Phase 2 Exploration Program. A total of 107 samples were collected in areas of outcrop along an identified 3 kilometer long mineralized trend at the project. The Phase 2 sampling program focused on the south central portion of the Gunman property, an area containing the RH South Target, Far South Copper Target and the TQCU Copper Target.
The results of the program are highly encouraging as very high grade zinc, copper and silver mineralization has been identified in outcrop and subcrop at the RH South Target located approx. 500 feet from the main RH Zone. Additionally, high grade copper and silver mineralization has been outlined in outcrop at both the Far South Copper and TQCU Target areas. Geologic data collected during the sampling clearly shows that the mineralized rock units at the Far South Copper and at the RH South Targets are identical to those known from drilling and limited outcrop at the strongly mineralized main RH Zone.
Future drilling will also include additional mineralized zones identified during the 2014 Phase 2 sampling program at the RH South, Far South Copper and TQCU Copper Targets.
RH South Target Surface Sampling Results
Limited, past RC and diamond drilling in the RH South Target area has produced intervals of >5% zinc mineralization and local intercepts containing >50 grams per tonne silver. Outcropping copper oxide mineralization on the RH South Hill has never been drilled.
Outcrops, subcrops and local float of bleached, granular to pitted, white limestone were sampled in detail. Assays of samples of this highly altered rock have returned very high zinc contents up to 35.67% zinc along with 10 to 60 grams per tonne of silver.
Sample number 122950 retuned assays of 11.5% copper, 2.19% zinc and 228 grams per tonne silver from green stained, leached and punky subcrop material. This is the first time Cypress has found strong copper, zinc and silver mineralization occurring together at the Gunman project. Very limited drilling of this strongly altered and well mineralized area at the RH South Target has occurred.
Assays taken during the 2014 sampling program at the RH South Target range from 0.1 to 344.0 g/t silver, 0.1 to 41.95% zinc, and 0.01 to 14.75% copper with significant assays shown in the tables below.
2014 Phase 1 RH South Target Surface Sampling Results
|Sample #||Target||Ag g/t||Zn%||Cu%|
Additional 2014 Phase 2 RH South Target Surface Sampling Results
|Sample ID||Chip or Grab||Ag g/t||Zn%||Cu%|
|SRH CC-1||2 meter Chip||1.1||0.02||0.01|
|SRH CC-2||3 meter Chip||2.3||0.07||0.01|
|SRH CC-3||4 meter Chip||16.2||9.53||0.03|
|SRH CC-4||5 meter Chip||26.3||5.08||0.03|
|SRH CC-5||3 meter Chip||21.0||4.37||0.01|
|SRH CC-6||3 meter Chip||36.8||17.00||0.18|
|SRH CC-7||2 meter Chip||44.3||4.23||0.29|
The assay and geologic results from the detailed sampling of the RH South hill indicate that very similar environments are present at the main RH Zone and at the RH South Target. In both areas, silver rich, copper oxide mineralization hosted by a distinctive pellet sandstone overlies well developed zinc-silver mineralization hosted by strongly decalcified carbonate units.
Far South Copper Target Surface Sampling Results
The Far South Copper Target is located at the south end of the identified 3 kilometer long belt of zinc, copper and silver mineralization at the Gunman property. Historic pits and trenches have been cut into outcropping copper oxide mineralization near the top and down the east flank of a prominent hill. The mineralization is hosted by a well oxidized sandstone and by an underlying, distinctive pellet sandstone unit.
Assay and geologic data from the surface sampling program clearly indicate that the Far South Copper Target represents the southward extension of the zinc-silver-copper mineralized trend at the RH Zone and RH South Target. Strong copper and silver mineralization up to 4.38% Cu and 88.7 g/t silver is localized in oxidized, fractured and veined clastic units identical to those at the top of RH South Hill and at the TQCU Copper Target located along the west flank of the very high grade main RH Zone.
No drilling within the outcropping copper-silver mineralized area has occurred. Additionally, the covered lower contact of the copper-silver mineralized clastic units is covered at the Far South Copper Target. This contact with the underlying carbonate units is a very high quality target for exploration for high grade zinc-silver mineralization as seen at the RH South Target and main RH Zone to the north.
Assays taken during the sampling program at the Far South Copper Target range from 1.1 to 88.7 g/t silver, 0.0 to 0.02% zinc, and 0.0 to 4.38% copper with significant assays shown in the table below.
2014 Far South Copper Target Surface Sampling Results
|Sample #||Target||Ag g/t||Zn%||Cu%|
|122904||Far S Cu||8.7||0.00||0.41|
|122905||Far S Cu||2.2||0.01||0.36|
|122906||Far S Cu||16.2||0.00||0.57|
|122907||Far S Cu||24.6||0.01||0.00|
|122908||Far S Cu||61.7||0.00||3.00|
|122909||Far S Cu||81.7||0.02||3.96|
|122910||Far S Cu||1.1||0.00||4.06|
|122911||Far S Cu||22.2||0.01||0.06|
|122912||Far S Cu||12.8||0.00||2.51|
|122913||Far S Cu||88.7||0.00||3.01|
|122914||Far S Cu||74.6||0.00||1.89|
|122915||Far S Cu||24.2||0.01||2.71|
|122916||Far S Cu||2.1||0.00||4.38|
TQCU Copper Target Surface Sampling Results
The TQCU copper target lies 300 feet west of the main RH Zone, and as has been found at RH South and Far South Copper Targets, TQCU has high grade copper-silver mineralization hosted by the pellet sandstone unit. Copper mineralization from outcrop chip and grab samples retuned up to 6.3% copper and 97.1 g/t silver. Limited drilling of this target area has occurred.
As seen at the RH South and Far South Copper Targets, copper-silver-arsenic mineralization is well developed within the basal portion of a clastic sedimentary package located immediately above the carbonate sequence which is strongly mineralized at both the main RH Zone and the RH South Target.
Assays taken during the sampling program at the Far South Copper Target range from 2.6 to 97.1 g/t silver, 0.08 to 0.82% zinc, and 1.41 to 6.3% copper with assays shown in the table below.
2014 TQCU Copper Target Surface Sampling Results
|Sample #||Target||Ag g/t||Zn%||Cu%|
2014 Phase 2 Surface Sampling Conclusions and Recommendations:
The results of the 2014 Phase 2 surface sampling program are considered highly encouraging.
Arsenic, bismuth, molybdenum and tungsten anomalies accompany the copper-silver-zinc mineralization in the oxidized clastic units and together suggest the possibility of an intrusive source for the mineralizing fluids.
Sampling of the RH South Hill was particularly successful and definitively shows that the geologic environment and high grade mineralization at the RH South Target is nearly identical to that of the main RH Zone. Strong copper-silver mineralization in the well oxidized, basal portion of a clastic sedimentary package overlies strongly decalcified carbonate rocks which host robust zones of very high grade zinc and silver mineralization.
The RH South Target has been drilled at a first pass level of detail and well mineralized intervals have been discovered there. The results of the surface sampling program strongly suggest more drilling is needed at the RH South Target due to multiple samples of bleached, decalcified limestone returning assays in the 10% to >35% zinc range and accompanied by silver values up to 228 g/t.
Gunman Outcropping Copper Oxide Mineralization
The two holes intersected strongly oxidized sandstone and underlying limestone. It is possible a cross fault has offset the mineralization. Detailed sampling and mapping of the copper mineralization is planned to better define drill targets.
Cypress will continue in its exploration efforts to delineate the RH North target area with the potential establishment of a mineralized zone similar to the existing high grade RH zinc-silver oxide discovery zone located approximately 1500 feet to the south in the middle of the property.
Mineralization at the Gunman project appears to be controlled by a series of well developed NNE trending fracture zones. This setting is seen in other locations along the Carlin and the Battle Mountain gold trends where the NS to NNE alignments of mineralized zones are located in cross cutting structural zones within or adjacent to the main NNW striking trends. The mineralization of the zinc-silver zones on the Gunman is located close to surface. The very high grade of zinc-silver mineralization seen in the RH zone is a compelling reason to continue exploration on the Gunman project.
Past surface sampling and drilling by Cypress on the Gunman property has resulted in the discovery of a series of zones of zinc-silver mineralization over a strike length of 2500 feet. The northern most mineralization known (hole GD-15) on the property was discovered at the end of the 2007 drill program.
SUMMARY OF GUNMAN ZINC-SILVER PROJECT NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT (March 2014)
Cypress Development has prepared a Technical Report detailing base metal and precious metal exploration results on its 100% owned Gunman project.
The mineralization at Gunman appears to be of carbonate replacement style with central zones of massive mineralization being flanked by halos of partial replacement and veining. The replacements are now very strongly oxidized within 400 feet of surface. Sulfide mineralization, sphalerite, pyrite and argentite, is seen at the base of the oxidized portion of the high grade zones.
The high grade Gunman RH Zone lies in the central portion of the 2500 foot strike length of known mineralization. Mineralization within the RH Zone is spectacular for its zinc and silver grade, for the down hole interval length of the very high grade mineralization and for the continuous nature of zinc grades in excess of 5% accompanied by multi ounce silver values. The mineralization is also located close to surface.
Very impressive oxide zinc and silver mineralization was found in reverse circulation drilling of the RH Zone in several holes including hole GM-26 in August of 2000. The interval in GM-26 from 40 to 250 feet down hole, a 210 foot interval, including lower grade upper and lower contact zones, grades 13.1% zinc and 4 oz/t silver. This interval includes a 165 foot interval from 50 feet down hole to 215 feet down hole that assayed 16.6% zinc and 5 oz/t silver.
Mineralization at Gunman appears to be controlled by a series of well-developed NNE trending fracture zones. This setting is seen in other locations along the Carlin and Battle Mountain gold trends where north-south to NNE alignments of mineralization and ore zones are located in cross cutting structural zones within or adjacent to the main NNW striking trends.
The complex carbonate and calcareous clastic sediments that host the known mineralization lie in the east limb of a north striking syncline. This rock package dips steeply west into the nose of the syncline located in the western portion of the property. The syncline is cut by a series of well-developed N-S trending fault-fracture zones that appear to control the position of mineralization. Fracturing along the axis of the syncline is covered by the Cypress claim block but has not been explored by drilling to date and represents one of the high quality exploration targets on the property.
The very high grade of zinc and silver mineralization in the RH Zone is a compelling reason to continue exploration on the Gunman property.
2000 - 2001 Significant zinc and silver assays previously reported by Cypress from the Gunman project include:
2000 - 2001 Other significant zinc and silver assays previously reported by Cypress from the Gunman project include:
*oz = troy ounce
For additional documentation of the data used in the Technical Report please refer to the full report filed on SEDAR and on Cypress' web site dated March 17, 2014 and titled: GUNMAN ZINC-SILVER PROJECT NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT.
The near surface Gunman RH North Zone was a new discovery found by drilling vertically through the over lying gravel deposits and into the mineralized limestone beneath. Follow-up work was limited due to adverse market conditions with numerous untested targets remaining. The strike of the known zinc and silver mineralized zones at the Gunman property is approximately 4,200 feet.
Additional drilling is being planned to further delineate the Gunman high grade RH zone and assess nearby targets on strike. Cypress intersected >1% zinc mineralization on a 1500 foot NNE stepout in the last hole drilled in 2007. Grades in that hole are very similar to those found on the east and west flanks of the main high grade RH zone. The mineralization is carbonate replacement type and is almost exclusively zinc oxide. Strong potential exists to identify additional high grade zinc-silver mineralization at the Gunman project.
Past exploration at Gunman Project:
Two drill programs completed in 2000 and 2004 by Cypress Development on the Gunman property included 26,000 feet of drilling, which returned some spectacular drill intercepts with grades reaching up to 33% zinc over 5.0 feet, and 26.8% zinc and 8 oz per ton silver over 75 feet. (SEE PICTURES AND CHART BELOW)
Additional drilling is planned to further delineate the RH zone and assess nearby targets. The tabular RH zone covers an area 275 feet long by 125 feet wide with an average thickness of 82 feet and an average grade of 8.9% zinc based on 14 adjoining holes. The mineralization is carbonate replacement type and is almost exclusively zinc oxide. Strong potential exists to identify several medium tonnage deposits that could one day constitute an intermediate sized, high-grade zinc mining operation.
In January 2007, Cypress Development announced the completion of two geophysical programs over a 2.5 kilometre long trend of variable zinc mineralized stratigraphy at the Gunman zinc project.
A "Titan 24" electrical survey was completed on the Gunman property in August 2007 and was followed by a detailed gravity survey completed by mid December. Both surveys were centered on the high-grade RH zinc-silver oxide / sulfide zone and extended a total of 2.5 km north to south to cover the known extent of alteration / mineralization within the host carbonate section. The surveys were intended to identify drillable targets with RH Zone type signatures, as well as possible sulfide hosted targets in the underlying reduced stratigraphy.
The Titan Survey results indicate a series of strong, discrete conductors apparent along Titan line 300E. Detailed geologic control from surface mapping indicates that these conductors occur within north to south striking RH Zone stratigraphy, and represent a very prospective series of anomalies. Outcrops of strongly altered and locally mineralized limestone are scattered along the strike of the Titan 300E line. The mapped conductors occur beneath and to the south of the known RH zinc oxide zone. None of the mapped conductors have been drilled to date.
Four new targets (in addition to the RH zinc oxide zone) have been identified as having zinc oxide potential. A total of five targets have been identified as having zinc sulfide potential. ce.
Of major significance to the Company is the size of the potential targets. All of the new targets are believed to be significantly larger than the known RH Zone.
The combined presence of host rock, structure, drill indicated zinc-silver mineralization, and strong Titan conductive anomalies make the RH Trend targets a priority for the exploration of additional zinc/silver deposits.
In October 2007, Cypress Development announced it had completed a diamond drill program of 18 holes totalling 11,516 feet (3,510 metres) and confirmed the presence of high-grade zinc-silver mineralization in the RH Zone and identified further mineralization in a nearby step out area 1200 feet to the north of the RH Zone deposit.
The Company believes there is significant potential to discover a major new geological extension to the north of the known RH Zone zinc deposit encountered in the 2007 drilling. Cypress is now compiling all data from this program with the intent of returning to the Gunman property in the future to explore the possibility that the two known zones can be connected along strike.
While this new step-out zone is lower grade than the RH Zone, the geologic setting of the new zone is identical to that at RH. The mineralization in Hole GD-15 is localized in strongly altered Gunman limestone in a position immediately east of the fossiliferous limestone section.
Four points are important in the interpretation of the potential of this new step-out discovery:
1. The zinc and silver grades intercepted in Hole GD-15 closely match those seen at the east and west flanks of the RH Zone. The Company believes it is highly probable that higher zinc and silver grades would be found by a program of offset drilling to the north, south and east of Hole GD-15.
2. The top of the mineralized zone in Hole GD-15 is a fault zone. It is likely that the upper portion of the mineralized zone has been down-faulted to a position immediately east of the hole.
3. Very limited drilling of the 1200 feet between the RH Zone and Hole GD-15 has effectively tested the vertical zone of mineralization found in Hole GD-15. It is considered very likely that additional mineralization exists in the 1200 feet strike length between the 2 known mineralized zones.
4. The total strike length of known zinc-silver mineralization within the Gunman limestone has been increased from 800 feet to 2000 feet by step-out Hole GD-15.
Overview Of The Gunman Project Geology
The Gunman project covers an area of Permian carbonates and clastic rocks over-thrusted on a steeply dipping carbonate sequence. The proximity of this thrust plane to the RH zone suggests a possible genetic relationship between the two. Future work will include a regional exploration program to identify other potential deposits on the Gunman and adjoining properties.
The geology of the Gunman property is dominated by a broad north-south plunging syncline with sandstone-conglomerate in the core. The main body of mineralization appears to be located over a sub-parallel fault 50-75 feet west of the Range Front fault. Outcropping mineralization is found throughout the Gunman prospect. Zinc, silver, copper, and a variety of accessory metals occur in potentially economic quantities and grades. A function of water table and weathering at depth, minerals are found to be either oxidized or in their primary sulfide form, both of which are amenable to conventional recovery techniques.
Metallurgical advancements in the treatment of oxide zinc deposits have made their economic viability increasingly attractive.
Preliminary testing using acetic acid digestion on the Gunman ore showed a high solubility and XRD identified Smithsonite (Readily Soluble) as the primary oxide zinc bearing mineral. This shows the recovery using acid digestion is very high in this case. Meaning, this project is very amendable to heap leaching (Please see chart below).
Future Zinc Outlook
The Zinc market in the Western world has been in a supply deficit for quite some time, and now, for the first time, it is in a global deficit. And the deficit will only get bigger. 40% of Zinc production comes from junior miners, as the big zinc ore bodies are tapped out and the large mines close, they will continue to be replaced by smaller zinc operations. Brunswick was the first large zinc mine to close, Century, Skorpion and a whole host of other mines are following suit.
The big zinc ore bodies are near an end and there is no replacement on the horizon for two reasons:
1) There are no more big ore bodies available.
2) There is no serious exploration for zinc.
Interestingly, as Brunswick, Century and Skorpion shut down their zinc operations, the sector has been freed up to bring on smaller-capacity mines, which helps the supply situation. But none of these potential developments can replace the magnitude of what we are losing by way of the big ore bodies going extinct.
- The zinc market has rebounded since the beginning of 2009.
- China, a long term world zinc supplier is now a net importer.
- Rapidly growing BRIC economies will further increase the demand in the years to come.
- Best estimates suggest that a significant portion of mine capacity will be closing or decreasing over the next few years.
- Growing risk of the tightening of the zinc concentrate market.
- Few new mines are currently being developed and therefore it is predicted that few will be entering production in the foreseeable future.
- Its most important application is in the protection of steel against corrosion.
- Steel is one of the most widely used materials in the world and zinc allows its durability to be prolonged. It extends the life and reduces the maintenance costs of many steel goods such as homes, cars, bridges, and port facilities.
- Zinc fuel cells are used to power electric vehicles, generators, computers, cell phones, and hearing aids.
- Is a natural component of the earth's crust. It is also present in air, water, plants, animals and humans.
- Is an essential element for human health. Adequate daily intake is important for the proper function of immune system, digestion, and reproduction.
- Is a natural element that plays a critical role in the biological processes of all living organisms. Therefore it is critical to the environment rather than harmful.
- It is used in food, animal feed, and fertilizers, as well as pharmaceuticals and cosmetics.
- Is fully recyclable.
Zinc is produced and consumed in five major forms: metals, chloride, dust, oxide and sulphate, with metal being by far the largest tonnage and used predominantly in galvanizing and alloys. Zinc's main market is galvanizing, which accounts for almost half its modern-day demand. The electrochemistry of zinc is such that steel coated with zinc (galvanized steel) exhibits very high levels of corrosion resistance, which gives added protection against corrosion to building structures, vehicles, machinery and household equipment. This application accounts for 47% of total refined demand. Zinc based alloys in die-casting, ranging from automotive components to toys and models, account for 14% of refined demand, with copper based zinc alloys (brass) accounting for 13%. Other uses of metallic zinc include roofing products and dry cell batteries. Chemical and other applications account for the remainder of refined demand (11%) where it is used in a diverse range of products and uses such as tires, paints, pharmaceuticals and chemical processing.
With supply-demand fundamentals arriving back in the global zinc market, the Gunman project has the potential to become an exceedingly valuable asset for Cypress Development Corp.
William Willoughby, PhD, PE, Director & CEO of Cypress Development Corp. is a Qualified Person as defined by National Instrument 43-101 and has approved the technical information on this website.