Pasinex To Acquire 80% Of Gunman Project In Nevada 

 

TORONTO - Pasinex Resources Limited reported that through its wholly-owned subsidiary Pasinex Resources Nevada Limited, it has entered into an option agreement with Cypress Development Corp and Silcom Systems Inc. to earn up to an 80% interest in the Gunman zinc project located in White Pine County, Nevada. Pasinex has acquired the option by honoring the terms of Silcom's original option agreement to acquire an 80% interest from Cypress in the Gunman zinc project. 

President and CEO of Pasinex, Steve Williams said, "We want to grow Pasinex into a mid-tier zinc company and acquiring this new zinc project is the next step towards that objective. Our 50% owned Pinargozu zinc mine in Turkey has exceeded our expectations and that is a testament to a great team and high grade generating profitability in a relatively short time. We recently received our full dividend related to 2016 profits from the joint venture company Horzum A.S. of approximately US$1 million. This represents the first cash coming out of Turkey. Expected future cashflows from Pinargozu underpins the reason to enter into the option to acquire this high grade zinc prospect in Nevada that shows many similarities to what we have in Turkey."

The Project in White Pine County, Nevada in the northern half of the Basin and Range physiographic province called the Great Basin. The Project area is 106 kilometers south of Elko Nevada, 48 kilometers northeast of the town of Eureka. Reverse circulation drilling programs totaling 12,250 meters have intersected zinc grades between 5% to 33% and silver between 15g/t to 465g/t over substantial widths. The deposit style at Gunman is carbonate replacement (CRD) with central zones of massive, strongly oxidized mineralization and halos of partial replacement and veining. The mineralization is within 125 meters of the surface. 

Western Mining Corporation (WMC), while initially exploring for gold in the early 1990's, discovered zinc at Gunman quite by accident. A series of reverse circulation holes targeting the mineralized outcrops at Gunman led to the discovery of the main "RH (Zinc) Zone". Gold values were low and erratic and as a result WMC allowed the claims to lapse in 1996. White Pine Minerals staked the property in 1999 and vended the claims to Cypress. Cypress began an aggressive RC drill program in May 2000 and discovered greater than 10% zinc over drilled intervals of 18 meters. Multi-ounce silver values occurred with the zinc. The best result was in RC drillhole GM-26 at the RH Zone which cut 65 meters averaging 13% zinc and 126 ppm silver including 30 meters from a depth of 37 meters averaging 23% zinc and 231 ppm silver. Additional discoveries of high grade zinc, lead and silver were made 250 meters south of the RH Zinc Zone.