HILTON HEAD, S.C., Sept. 30, 2011 /PRNewswire/ -- Silver Scott Mines, Inc. (OTC: SILS) is pleased to announce it has increased its mineral concession holdings in the Quitovac Mine area in northern Sonora state. The Company had previously announced the acquisition of the Quitivac Mine concessions (Feb. 10, 2011). The Quitovac mine area previously acquired consists of 13 older concessions totaling about 2500 hectares covering more than a 3 km. long zone of shear related gold mineralization. Previous property operators have calculated shallow drill hole based historic resources ranging from a low of 112,000 ounces gold in a resource averaging 3.14 grams Au per tonne (Technical Report, 2002) ranging up to 325,560 oz. Au in a resource averaging 1.35 grams per tonne.
The new 12,000 hectare concession acquired by the Company covers a large area south and west of the older concessions but on trend of the gold mineralization from the mine area. Much of the new concession area is pediment gravel covered. The previously mined La Choya gold mine operated by Hecla Mining Co. is located about 8 km southeast of the Quitovac mine and 2 kms east of the new concession. Paved highway, electric power, and water are available within 3 km of the project site.
The majority of the recent historic exploration done at Quitovac consisted of drill programs of Penoles-Fresnillo and Santa Cruz respectively in 1988 and in 1997. Significant exploration remains to be completed with future planned drill programs expected to greatly expand the resource at the project. Mining was active around 1900.
The Quitovac mine is located within a regional gold mineralized belt known as the Sonora-Mojave Megashear which has the geological character of a broad fold thrust belt more than 300 km long. This belt hosts 11 gold deposits in production or near production and most located in Mexico. The largest gold deposits in this belt are the Mesquite Gold mine (owned by New Gold) located north of Yuma, Arizona and the Herradura Gold mine complex (owned by Fresnillo and Newmont). The Herradura complex consists of five large gold deposits reportedly containing more than 11 million oz. Au. These mines are low grade open pit heap leach operations..
John Ryan, CEO of Silver Scott commented, "We are very pleased to have acquired this expanded land position to support what is shaping up to be a very productive and exciting gold play in Mexico. With gold at historic high metal prices, we expect Quitovac can produce as a low cost heap leach mine. Additionally, we are excited to begin detailed examination of the entire Quitovac property which will help us target our drilling which includes testing part of the gravel covered pediments. Quitovac is a project which is amenable to our overall corporate strategy of defining resources capable of initiating production of gold from heap leach processing with progressive expansions of the operations."
For further information please contact:
Silver Scott Mines, Inc.
301 Central Ave. #384
Hilton Head, SC 29926
The source of this news release is Silver Scott Mines, Inc. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.
SOURCE Silver Scott Mines, Inc.