NEVADA & THE WESTERN STATES — Iron King revived as VMS exploration target

An option agreement with a private company sets the stage for Minera Sierra Madre (MSA-A) to acquire and explore the past-producing Iron King mine property in Yavapai Cty., Ariz.

A volcanogenic massive sulphide (VMS) deposit of the type found in Canada and Australia, Iron King produced more than 5 million tons of precious and base metal-rich ore between 1942 and 1966. Production during this period totalled 616,493 oz. gold, 18.5 million oz. silver, 250 million lbs. lead, 735 million lbs. zinc and 19.1 million lbs. copper.

Chairman Peter Holmes says the deposit is richer in gold and silver than most of its Canadian and Australian counterparts and that it therefore presents a unique opportunity to explore for a high-grade underground, polymetallic deposit.

The mine closed because readily accessible ore was exhausted and because a limited exploration program failed to find more reserves. However, Holmes points out that modern concepts in VMS deposit genesis and geophysics have led to numerous discoveries near mined-out deposits elsewhere.

Sierra Madre hopes to achieve similar success at Iron King, and is particularly encouraged by the results of work carried out by a private syndicate, which was aimed at identifying other subcropping massive sulphide lenses adjacent to or below the mined-out body.

One of two deep holes in the 1993 program hit three previously undiscovered lenses of massive sulphides (Massive Lower 1 and 2, and Massive Upper I) 1,600 ft. south of the mine working and 2,800 ft. below surface.

Massive Lower 1 returned 4 metres of 0.2 oz. gold, 2.3 oz. silver, 3.04% lead, 7.38% zinc and 0.3% copper; Massive Lower 2 returned 3 ft. of 0.12 oz. gold, 4.8 oz. silver, 5% lead, 10% zinc and 0.51% copper; and Massive Upper 1 hit 1.4 ft. of 0.32 oz. gold, 3.34 oz. silver, 1.86% lead, and 0.02% copper. True widths are about half the widths of the reported intersections.

Sierra Madre says “strong evidence” indicates that the three massive sulphide zones encountered in this hole may coalesce to the south and form a substantially thicker zone of massive sulphides.

The initial work program will consist of drilling several wedge offsets to confirm the grade and thickness, and to explore a newly discovered massive sulphide lens on the southern side of a dacite-dome complex.

To acquire the mine property, the junior is required to pay US$115,000 in cash over five years and make a one-time royalty payment of US$2 million. The company also has the right to buy out an existing 2% net smelter return royalty for US$1 million at any time.