Carolay Property Overview
Carolay 2012 Assay Result Highlights
Assay results produced during 2012 provided the highest value results Carolay has yet produced. While low value assay results were also recorded the surprising number of high value results signal the potential for discovering rich mineralization at the Carolay Silver Polymetallic Project.
On March 2, 2012, Sunset Cove Mining reported assay results from the Carolay 4 vein channel samples that averaged 351.55 g/t of Silver. One sample from Carolay 4 showed an exceptional 4,694 g/t of Silver.
On July 9, 2012, Sunset Cove Mining reported assay results from two surface sample channels on the Vanessa Vein that averaged 312.77 g/t of Silver.
On October 30, 2012, Sunset Cove Mining reported on channel sample results from the Lindsay Structure and the two highest value samples came to 569 g/t of Silver and 1308 g/t of Silver.
On Nov 21, 2012, Sunset Cove Mining reported on two high-grade channel samples results from the Maria Structure consisting of 1,165 g/t of Silver and 1,050 g/t of Silver.
Sunset Cove Mining’s Flagship Carolay Silver Polymetallic Property is located 550 km NNW of Lima in the Department of La Libertad, near the village of Ushnobal close to roads, water and the national electrical grid. It contains three mineralized zones, the Carolay Vein, Humberto and Marañon.
Carolay is located on the fringes of the Pataz Batholith, known internationally for its rich gold and silver deposits. According to the Geological, Mining and Metallurgical Institute of Peru, 6 million ounces of gold have been produced in the Pataz, Parcoy and Buldibuyo mining district from 16 mines.
Within a 50 km radius of Carolay are three gold mines, the Poderosa, Horizonte Maranon and Retamas Mines. Initial sampling of the Carolay Vein averaged at economic grade of silver at over 269 grams per tonne of silver and has been reported in Sunset's original NI 43-101 technical report.
The mineralization found on the Carolay property and the adjacent Marañon sector fits into the model of polymetallic veins and is similar to that found in the highly prospective Coeur D’Alene Silver District in Idaho, which historically has produced more silver than any other Silver District in the U.S.
The company’s NI 43-101 Technical Report on the Carolay Property, which now totals 19,484 hectares, demonstrates an economical grade of silver ore at 269 g/t Ag for the main Carolay vein. We now believe the main Carolay vein extends for more than three kilometres.
During 2012 our advanced exploration and drilling campaign discovered 13 new mineralized structures and eight new silver bearing veins, a number of new geophysics anomalies, bringing the total to six anomalies and an additional six adits, bringing the number of known adits to seven. The number of adits, which are horizontal tunnels into the ore bearing rock are important for a number of reasons.
They indicate that Carolay was once the historic scene of professional mining activity that typically only harvested the low hanging fruit, rich veins of ore that surfaced and then were followed. Limited by the technology of the times, these historical workings imply the presence of more silver than was previously thought, like an iceberg, there is usually a lot more mineralization underneath than there is on the surface.
From a geological perspective the adits are a great aid to exploration because they allow us to follow and map the geological structure of Carolay more easily. Finally, the adits suggest that the main Carolay vein is much longer than was originally thought.
During 2013, Sunset Cove intends to focus on an advanced 3,000 to 10,000 metre diamond drilling and exploration campaign on the main Carolay Vein, Carolay 1 and the other six vein structures contained in Anomaly 1 to fully map Anomaly 1. The resulting data will be used to produce a NI 43-101 compliant Initial Resource Calculation.
The company will also continue our surface and adit sampling programs as well as more fully exploring the Maria and Lindsay structures where initial high value assay results have been reported. Sunset Cove also intends to conduct a geophysics study over an additional 1,600 hectares, claim additional land surrounding Carolay and enter negotiations for new projects.
All of Sunset’s existing and potential properties are or will be located near existing significant mining or exploration projects.
Sunset Cove Mining is a publicly traded Canadian Corporation listed on the Toronto Stock Exchange Venture Exchange: TSE-V: SSM, and on the Bolsa de Valores de Lima in Peru, BVL: SSM. The company is headquartered in Toronto, Ontario, with an office in Montreal. The company also has a wholly owned Peruvian subsidiary, Minera Sunset Del Peru S.A.C based in Lima.