Metalline Mining Company Announces New Round of Block Models
Coeur d'Alene, Idaho - Metalline Mining Company (Amex: MMG) announced that it has completed a cycle of block modeling of the drilling and sampling results on the Sierra Mojada project.
For engineering and geological reasons, we have divided the Sierra Mojada data into two zones: the Northside zone, the area north of the Sierra Mojada fault and the Southside zone, the area south of Sierra Mojada fault. The Southside zone is subdivided into a lower zinc oxide zone and an upper zinc oxide zone. We have constructed block models on each of these zones based on our most current sample data. Because we have not yet completed drilling in the area, the results of all block models are preliminary and are expected to change as more data is available.
The current results on the Northside area, based upon 3D modeling of 16,604 composite samples from 5,301 drill holes and other sample locations, shows there are at least 30,263 blocks representing 5,910,742 cubic meters of material with satisfactory drill hole density that has an average interpolated drill hole assay grade of 98.0 grams per tonne silver and 2.79% zinc. A volume of similar size and assay grade does not yet have high enough sample density to receive the same level of confidence as the volume reported above. Comparison of the Northside blocks with a preliminary open pit calculated for the previous Southside lower oxide zinc zone, shows that most of the Northside material is within what was previously modeled as barren, waste material in the open pit calculations. The silver in this Northside block is in addition to the silver which is present in the Southside oxide zinc block models. Copper and lead, which are locally present in some of the Northside area, do not currently appear to be economically significant compared with zinc and silver content. We will continue to construct block models for copper and lead so that we understand their distribution and can recognize the fact if larger concentrations are encountered in future drilling.
Block modeling is a mathematically sophisticated method of estimating the average grade and volume of mineralized material using chemical analyses of samples. The results provide a three-dimensional model of the tonnage and grade of a collection of small blocks that represent the rocks as well as measures of the statistical reliability of the results for each block. Only those blocks with relatively high reliability may be used in a final feasibility study.
The interim results help us to refine our drilling program and can also help identify technical questions that must be answered so that engineering analysis can proceed quickly and efficiently.
Technical Aspects of the Block Models
The block models were created by the staff of Contratistas de Sierra Mojada, Metalline's Mexican operating company, using GEMS 6.1 software. Three distinct models were evaluated: one for zinc and silver in the Southside lower oxide zinc block model; a second for Southside upper oxide zinc block model; and a third in a Northside block model volume of rock. Both of the Northside and Southside block models are bounded at the top by the surface of the ground or by the base of recent alluvium. Both Southside zinc oxide block models were evaluated independently for both zinc and for silver; the Northside block model was evaluated independently for each of silver, zinc, copper, and lead. The Southside lower zinc oxide manto block model is a rerun of the model previously computed by our consultants but using additional, more recent data. The variography for the work was performed by our external consultants and they supervised and reviewed the work of our staff. The blocks used were 6.25 m by 6.25 m by 5 m vertical dimension.
Most of the chemical data used in the studies was from our external laboratory, ALS Chemex -Vancouver laboratory. Some of the data was from our internal laboratory and has not yet been analyzed by an independent laboratory. A quality assurance involving internal standards, blanks, and duplicates is used on both internal and external laboratories. A comparison of results from both laboratories obtained on splits from a large suite of duplicate samples indicates that on average the internal laboratory analyses are lower than the results from the commercial laboratory. All samples above threshold values will be submitted to the commercial laboratory for a full suite of analyses, and the geostatistics and block modeling will be re-run once a complete suite of commercial lab data are available.
No commercially mineable ore body has been delineated on our concessions, nor have any reserves been identified. The Company is an exploration stage company and does not currently have any known reserves and cannot be expected to have reserves unless and until a feasibility study is completed on our concessions that shows proven and probable reserves. There can be no assurance that our concession will ever contain reserves.
Drilling continues with three drills operating 6 days per week on the property. Typical production has been in the range of 890-1000 meters per month and most drilling is being done from the surface. Locations of completed drill holes will soon be posted on the Company website.
Metalline Mining Company is an exploration stage enterprise engaged in the business of mining. The Company currently owns mining concessions in the municipality of Sierra Mojada, Coahuila, Mexico. The Company conducts its operations in Mexico through its wholly owned Mexican subsidiaries, Minera Metalin S.A. de C.V. and Contratistas de Sierra Mojada S.A. de C.V. To obtain more information on Metalline Mining Company, visit the Company's web site (www.metallinemining.com).
This news release contains forward-looking statements regarding future events and Metalline's future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). These statements are based on current expectations, estimates, forecasts, and projections about the industry in which Metalline operates and the beliefs and assumptions of Metalline's management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions, are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Metalline's future financial performance, Metalline's anticipated growth and potentials in its business and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified elsewhere herein and Metalline's Annual Report on Form 10-K for the fiscal year ended October 31, 2008 under "Risk Factors." Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Metalline undertakes no obligation to revise or update any forward-looking statements for any reason.