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Gunman Zinc Project Location Map Click to Enlarge )
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Cypress Development Corp. holds a 73.13% interest, Bison Gold Exploration Inc. (CNQ: BGEI) 26.87%, in the 2,400 acres Gunman Zinc-Silver Project located in White Pine County, northeast of Eureka, Nevada. The Company completed 17,400 feet of drilling in 2000, which discovered the RH Zone where grades in excess of 25% zinc and 8 oz/ton silver were recovered over significant widths. The high-grades of zinc-silver mineralization encountered provides Cypress with the incentive to continue detailed exploration of the Gunman Project.
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.
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 37% zinc over 5.0 feet, and 26.8% zinc and 8 oz per ton silver over 75 feet. (SEE PICTURES AND CHART BELOW)
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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.
| Location of Phase One 2004 drill holes Click to Enlarge
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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 Company's 73.13% owned Gunman zinc project.
A "Titan 24" electrical survey was completed on the Gunman property in August and was followed by a detailed gravity survey completed in 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.
| Gunman Property 2007 Drill Target Basemap Click to Enlarge ) |
Titan - IP Inversion View Click to Enlarge
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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. None of the new targets have been drill tested and all but one of the new targets is within 500 metres of surface.
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 has identified further mineralization in a nearby step out area 1200 feet to the north of the RH Zone deposit.
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2007 Gunman Zinc Project Drill Map Click to Enlarge )
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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 near 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.
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2007 Hole GD-15 Core Picture Click to Enlarge )
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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 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. Five years ago, Anglo American, the largest mining company in the world, acquired control of Reunion Mining, increasing its interest in the Skorpion Zinc Project in Namibia, Africa from 40% to 100%.
An oxide zinc deposit, Skorpion has large reserves grading 10.6% zinc, all of which is mineable by conventional open-pit methods. In all likelihood, the oxide deposit resulted from the in-situ oxidation of a sediment-hosted sulphide body similar to the Gunman Zinc Project whose potential could one day rival Skorpion.
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).
| Preliminary Results Using Acetic Acid Digestion Click to Enlarge
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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.
| World Zinc Production & Industrial Consumption Click to Enlarge
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With production discipline arriving back in the global zinc market, the Gunman project has the potential to become an exceedingly valuable asset for Cypress Development Corp.
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