Consolidated Royal Mines acquires Conjecture Silver Mine

Business Wire, Sept 13, 1995

SPOKANE, Wash.--(BUSINESS WIRE)--Sept. 13, 1995--Consolidated Royal Mines Inc. (NASDAQ BB:CRYM) Wednesday announced that it has acquired full ownership of the Conjecture Silver Mine about 30 miles north of the historic Coeur d'Alene Mining District in North Idaho.

The mine property is on privately owned lands with adjacent unpatented mining claims. The Conjecture Mine was developed along a 12,000 foot mineralized shear zone. The Conjecture Mine, although currently inactive, has a past history of profitable high grade silver production.

Proven and probable ore reserves total 336,000 tons averaging 11 ounces silver per ton, 1 percent lead, 3 percent zinc and significant gold. An additional block of possible ore reserves totals 370,000 tons with similar grade. Royal geologists have also identified several unexplored gold bearing zones.

Two channel samples taken on the 700 level ran 2.85 ounces gold per ton over five feet, and 0.42 ounces gold per ton over seven feet respectively. The gold potential of this mine is largely untested because sampling during the mines operating period focused on silver ores, with less than 5 percent of samples assayed for gold. Management believes an excellent potential for the development high grade gold ores exists in the mine.

Underground mine workings are accessed by a modern 2,000 foot deep vertical, concrete, three compartment shaft which can be made fully operational with minimum additional expenditures.

The current replacement cost of this shaft and existing workings is estimated at over $12 million. The Conjecture shaft, and all mine workings to date, occur in rocks overlying the highly productive Revette formation, which has been the most favorable host rock for previous silver production in Coeur d'Alene Mines.

"Royal geologists believe that deepening the Conjecture shaft will develop addition silver and golf ores where previously productive ore structures penetrate into the very favorable underlying Revette formation," said Howard Crosby, Royal's chief executive officer.

"New discoveries in these highly promising targeted areas could make the Conjecture one of the most highly profitable mines in the Coeur d'Alene region." Royal plans an aggressive exploration program beginning in the spring of 1996.

Consolidated Royal Mines Inc., is a USA based exploration and mining company with primary emphasis on silver the company holds properties with significant silver reserves in Idaho, Montana and Utah.

CONTACT: Consolidated Royal Mines Inc., Spokane

Bob Jorgensen, 509/325-3539