Sunshine hits high grade on new vein

Boise-based Sunshine Mining (NYSE) has hit a vein of high-grade mineralization in the first hole of a program at its namesake mine in northern Idaho.

The galena and tetrahedrite values were intersected at about the 2,900-ft. level, from a new drill station situated on the 3,100-ft. level. Assays show an average of 67 oz. silver per ton and 25.6% lead across a true width of 7.2 ft. This confirms the presence of the West Chance structure from as low as 4,600 ft. below the surface up to the 2,900-ft. level, representing a vertical extent of at least 1,700 ft.

Another diamond drill hole, from the 4200 level, intercepted tetrahedrite mineralization at the 3700 level. The hole assayed 174 oz. silver per ton across a true vein width of 4.2 ft.

Sunshine has been trying to gain access to the undeveloped western area of the mine for more than two and a half years. It is extending the 3100 level drift, which was driven some 2,200 ft. in 1994. Limited mining has already begun on stopes on the 4400 and 4600 levels.

Surface drilling is attempting to locate the structure at higher elevations. If further drilling continues to prove promising, plans for drifting to these zones will be evaluated. Access could be gained within 12 months. Production would follow shortly thereafter if significant ore is present. Year-end estimates for 1994 point to reserves of 1.3 million tons, containing about 28.8 million oz. silver.