Tombstone Exploration Corporation (OTCQB: TMBXF; Berlin Stock Exchange: UDNA) incorporated under the laws of Canada in October 1997, is an exploration company involved in acquisition, exploration and development of base metal and precious metal mining properties. TMBXF is well positioned to capitalize on increasing demand and prices for copper, silver, gold, zinc, iron, manganese and talc. The Company controls one of the largest mining properties in southern Arizona. Through ownership of mineral rights to approximately 5,000 acres of historical mining land in areas around Tombstone, Arizona, the company is the largest mineral lessee in the Tombstone Mining District. At this time, the Company is concentrating on two of its properties: the Zebra gold-silver property and potentially large copper porphyry property. Over the next 18 months, TMBXF will focus on bringing its Zebra property into production which will generate capital to fund its copper porphyry project as well as further expand the Zebra resource. Apart from domestic assets, TMBXF’s “wild card” is its 20% entitlement to proceeds from Eurogas’s litigation against the Slovak Republic, currently being adjudicated in the International Arbitration Court (ICSID) in Washington D. C.
The Tombstone Mining District, a well-known, prolific mining area, that has generated more than $85 million in past ore production. It has a well-developed infrastructure of water, energy, skilled labor, excellent communication and transportation that’s responsible for its mining extraction costs being below average being easily accessible, the Tombstone Mining District is located 70 miles from Tucson and close to an international airport.
With a colorful history, the Tombstone Mining District is Arizona’s best known mining camp. Discovered by Ed Schieffelin in 1878, the various named mines went on to produce ore worth millions of dollars. At one time, Tombstone had over 15,000 residents. However, though fires nearly caused the death of Tombstone twice, the town was resilient. Besides being the setting for the OK Corral shootout with the Earps and Boot Hill Cemetery, the Tombstone Mining District produced precious metal ore valued at an estimated $85 million. Approximately 20 mines in the Eastern or Bunker Hill area contributed ore valued at $79 million, and a dozen mines in the Western or Mellgren area contributed ore valued at $6 million (including the Annex No. 40 and 41 veins: $60,000; Bonanza-Chance vein: $1 million; Junetta vein: $100,000; Louise vein: $100,000; Joseph No. 1 vein: $90,000; Joseph No. 2 vein: $150,000; San Pedro vein: $150,000; Solstice vein: $75,000; State of Maine vein: $3.5 million). Most of the Mellgren area veins are located on TMBXF property. At today’s prices, historical production from the Mellgren area is estimated to be about $200 million. However, production from these mines was minimal due to flooding (encountered below 250 feet) and a decline in silver prices during the 1890’s. Operations, shut down decades ago, left most of these mines idle since the 1930s.With today’s improved technology and pumping equipment, flooding is no longer an issue.
The Tombstone Mining District sits astride a regional trending structure, visible on topographic maps as well as satellite images of the American southwest. It is a northeast trending rift structure (shear), traceable southwest from Arizona’s Huachuca Mountains northeast to Silver City, New Mexico.
In its silver project, the principal trend of TMBXF’s mineralized structures is northeasterly, dipping steeply to the northwest. These structures are intersected by other mineralized structures trending in different directions. Ore deposits occur in both the fracture-fill and strata-bound pod structures. The fracture-fill structures are actually deep-seated fracture/fault zones trending northeast. They are considered feeder conduits for the pod deposits found in the upper sector of the mineralization system, the fracture-fill deposits being the predominant ore body.
Detailed mineralization studies of the Tombstone Mining District show a wide range of minerals including silver, gold, copper, lead, zinc, manganese, tellurium, molybdenum, and vanadium. Although Tombstone is mainly considered a precious metal district, famous for its bonanza silver deposits, the porphyry copper model of Lowel and Gilbert (1970) suggests the presence of a significant porphyry copper deposit at depth. Arizona, accounting for more than 60% of the US copper supply, has an estimated $34.2 billion impact on the US economy and $12.1 million on Arizona’s economy.