Cyprium Mining Corp. (TSXV:CUG) announced that its signed an agreement with a Mexico-based mining contractor regarding the rehabilitation of shaft #3 atits Potosi silver mine.
As quoted in the press release:
The rehabilitation of shaft #3 consists mainly in the installation of a new hoist, the overhaul of the rail system for the extraction of mineralized material and the installation of the necessary drilling and mining equipment and infrastructure at level 3 and 4 of the mine.
Once Cyprium receives the second tranche of the US $4.5 million bond financing announced in March 2015 (the Bond Financing) for an amount of approximately US $1 million Cyprium intends to further invest in the mining activities at level 3 and 4 with a view of increasing the production capacity. With the remaining US $2.5 million of the Bond Financing expected to be received later this year, Cyprium will finalize its plans regarding the rehabilitation of the larger and deeper shaft #5 of the Potosi silver mine which will provide access to all levels of the mine down to level 11. The rehabilitation of shaft #5 is expected to take about twelve months. Once shaft #5 is rehabilitated, the initial exploration and production will focus on levels 9 and 10 where the most recent exploration activities have taken place. At that time, Cyprium will also finalize plans regarding the possible rehabilitation of the San Guillermo processing plant which forms part of the Potosi joint venture.
Alain Lambert, chairman and CEO of Cyprium, commented:
The rehabilitation of shaft #3 is an important step towards restarting production at Potosi. The rehabilitation of shaft #3 is expected to take about six weeks at which point we expect to be able to start small scale production. The goal of this project is to gain access to mine levels 3 and 4 which were last mined between 2010 and 2012. Once production resumes, Cyprium intends to send the mineralized material extracted through shaft #3 of the Potosi silver mine to the Aldama plant.
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