Between 1910 and 1972 the Miller Lake O’Brien silver mine in northeastern Ontario turned out 42 million ounces of silver. It also left behind a lot of silver in tailings piles — 2.96 million ounces to be precise.
That’s where Temex Resources (TME-V) came in. In April 2006 the junior picked up the Miller Lake O’Brien property and related assets from Sandy K. Mines, a private company in Ontario, and started initial sampling work of the tailings deposits and began metallurgical test work.
This week Temex published a National Instrument 43-101 compliant resource estimate demonstrating that at a cut-off grade of 10 grams silver per tonne, the tailings contain an indicated resource of 1.94 million tonnes grading 47.5 grams silver per tonne for a total of 2.96 million ounces of silver.
Temex has started a 2,000-metre diamond drill program at the project, 3 km northeast of Gowganda. The program will test for the extensions of high-grade silver veins reported by the property’s previous owner, Sandy K. Mines, which the latter discovered from an underground exploration program between 1988 and 1995. The area has not been developed previously and all of the holes in Temex’s drill program will be drilled from surface and will range from 50 to 200 metres in length. Temex is also conducting soil sampling and prospecting.
The Gowganda silver property is 20 km east of the company’s 100%-owned Juby lease property, where Temex is working on expanding the current resource of 14.1 million tonnes grading 1.36 grams gold for 614,000 ounces of gold in the indicated category and 16.5 million tonnes grading 1.14 grams gold for 602,000 ounces of gold of inferred, both at a cut-off grade of 0.50 gram gold.
At presstime in Toronto Temex was trading at 31.5¢ per share within a 52-week range of 20¢-45¢ per share. The company has about 107.85 million shares, fully diluted.