Silver Scott Announces Acquisition of the Quitovac Mining Concessions
Silver Scott Mines, Inc. (SILS) Silver Scott Mines is a development stage precious metals company that currently operates in Mexico through a wholly owned subsidiary, Minera Mystery S. de R.L. de C.V.
- Charleston-North Charleston, SC (1888PressRelease) June 09, 2011 - In recent weeks, Silver Scott Mines, Inc. announced the Company had 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 gold mining 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. Visit http://www.mastersoftrivia.com/blog/2011/05/10-facts-abo ... for more details about gold mining in the United States.
For further information please contact:
John Ryan
Silver Scott Mines, Inc.
13 Bow Circle #147
Hilton Head, SC 29928
1.404.418.6203 phone
1.843.842.7248 fax
http://www.silverscottmines.com
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