Finlay Minerals Ltd is pleased to announce the commencement of a minimum 2,000 meters core drilling program on the high grade silver-copper Silver Hope project in central British Columbia. The core drilling will focus on the newly defined West and East Horizons, as well as along the previously drilled Main Horizon (Gaul, Superstition, and Hope silver-copper zones).
Mineralization on the Main Horizon of the Silver Hope project is the southern continuation of the Main and Southern Tail deposits mined by Equity Silver Mine (now owned by Goldcorp Ltd.) from 1975-1990. Production from the Equity Silver deposits (33,800,000 tonnes @ 0.4% copper, 64.7g/t silver, and 0.46g/t gold from open pit and underground mining) included ~64,000,000 ounces of silver, plus copper and gold.
Finlay acquired 100% interest in the Silver Hope Property in 2006 and since then has conducted geophysical surveys in 2007, 2008 and 2009 that included 30 kilometres of magnetic, induced polarization and gravity surveys as well as soil sampling. The results from these surveys combined with regional geological mapping carried out by the British Columbia Geological Survey in 2007 and a regional airborne geophysical survey in 2008 were compiled into a 3-D model. Together this data shows the correlation of the geophysics, geochemistry and drilling with the three known zones on the Silver Hope Project as well as linking the Equity Silver Mine deposits into the same 4.0 kilometre long north-south mineralized corridor (“Main Horizon”).
A four-hole drill program totaling 1,719.5 metres was carried out in 2007 to test the deep silver-copper breccia related mineralization in the Hope Zone. Highlights included 9.35 metres grading 333 grams of silver per tonne and 0.69% copper, including 4.0 metres intersecting 547 grams of silver per tonne and 1.06% copper; 33 metres grading 9.0 grams of silver per tonne and 0.34% copper; and, 3.8 metres intersecting 159 grams of silver per tonne and 1.09% copper. (Refer to the news release “High grade silver-copper intersected at the Silver Hope Project” dated September 10, 2007).
Finlay’s exploration efforts have identified a new and potentially mineralized north-south horizon 1.0 kilometre east of the Main Horizon, referred to as the “East Horizon”. The East Horizon has so far been traced by geological mapping as a rhyolite unit with an associated 2.0 kilometre induced polarization anomaly and anomalous soil geochemistry. This is very significant as the East Horizon area has not been drilled.
Adjacent to the Main Horizon, Finlay has identified a third induced polarization target referred to as the “West Horizon”. Like the East Horizon, the West Horizon has not been drill tested.
To date, Finlay has expended approximately $725,000 on exploration of the Silver Hope Project. The initial budget for the 2010 program is $260,000, including a minimum of 2,000m of core drilling.
Finlay is in negotiations to complete a non-brokered private placement of a private placement of up to $640,000 (the “Financing”) announced April 15th, 2010. The Financing will consist of (i) 3.0 million units of common shares and common share purchase warrants (“Non-Flow Through Units”); each Non-Flow Through Unit shall be offered at $0.10 and shall consist of one common share and one half warrant; one warrant entitles the holder to acquire one share of the Company at a price equal to $0.20 for a period of two years from the closing date of the Financing; and, (ii) 2,833,333 units of flow-through shares and common share purchase warrants (“Flow Through Units”); each Flow Through Unit shall be offered at $0.12 and shall consist of one flow-through share and one half warrant; one warrant entitles the holder to acquire one share of the Company at a price equal to $0.25 for a period of two years from the closing date of the Financing.
Warner Gruenwald, P.Geo., and V.P. Exploration for the Company, is the Qualified Person, as defined by National Instrument 43-101 and will managed the exploration program on the Silver Hope project.
Finlay Minerals Ltd. trades under the symbol “FYL” on the TSX Venture Exchange. The Silver Hope property is part of a strategic move to expand the Company’s presence in B.C., and to complement the Company’s Toodogoone projects. Documentation about the Company and properties can be viewed on the company’s website at www.finlayminerals.com.
On behalf of the Board of Directors,
Robert Brown, P. Eng., President