Silverstone Resources Corp.
("Silverstone") reports sales of 737,000 ounces of
silver in 2007. Silverstone previously forecast 2007 silver sales of 700,000 ounces (see
October 10, 2007 news release). The additional silver was due to
increased production rates at the Cozamin mine. On September 28, 2007,
Silverstone completed the purchase of 100% of the life of mine silver from
Lundin Mining's Neves-Corvo and Aljustrel mines (see June 6, 2007 press
release). Silverstone started to receive silver from Neves-Corvo
production commencing on October 1, 2007. The Aljustrel mine began
commissioning in late 2007. Silverstone changed its fiscal year end
from August 31 to December 31 and will be filing its audited four month stub
period ending December 31, 2007
in March 2008 and therefore will not be reporting
quarterly financials at November 30, 2007. Silverstone is pleased to
report silver sales results for the four months ended December 31,
2007. Silverstone purchased 2007 production at an average cost of
US$3.98 per ounce. The cost of silver is fixed at less than US$4.00 per ounce
through 2010.
|
2007 (F)
|
2007 (A)
|
Sept - Dec 2007
|
|
Ag (oz)
|
Ag (oz)
|
Ag (oz)
|
|
|
|
|
Cozamin
|
565,000
|
591,000
|
377,000
|
Neves-Corvo Copper
|
135,000
|
146,000
|
146,000
|
Neves-Corvo Zinc
|
0
|
0
|
0
|
Aljustrel Zinc
|
0
|
0
|
0
|
|
|
|
|
Total
|
700,000
|
737,000
|
523,000
|
Note: Audited results for the 4 months ended December 31, 2007 will be
reported in March 2008.
As a result
of the completed expansion to 2,200 tpd and the current expansion to 3,000
tpd at the Cozamin mine (see Capstone Mining Corp.'s January 17, 2008 press
release), Silverstone has increased its 2008, 2009 and 2010 silver sales
forecast to the following:
Silver
Sales Forecast (1)
|
2008 (F)
|
2009 (F)
|
2010 (F)
|
|
Ag (oz)
|
Ag (oz)
|
Ag (oz)
|
|
|
|
|
Cozamin
|
1,300,000
|
1,500,000
|
1,500,000
|
Neves-Corvo Copper
|
540,000
|
540,000
|
540,000
|
Neves-Corvo Zinc
|
90,000
|
260,000
|
260,000
|
Aljustrel Zinc
|
225,000
|
875,000
|
1,200,000
|
|
|
|
|
Total
|
2,155,000
|
3,175,000
|
3,500,000
|
1.
Silver sales forecasts are based on 2007 actual metallurgical
recoveries of silver to concentrates at the various operations combined with
forecast grades and production and existing smelter contracts for the
different concentrates.
Exploration
Properties
Silverstone
has earned a 100% interest on its five silver-gold exploration projects
(Copala, Claudia, Martha, Promontorio and Montoros) all located in Mexico,
pursuant to the amended and restated option agreement
between Silverstone, Grupo Minero Bacis S.A. de C.V. ("Bacis")
and Silverstone Resources, S.A. de C.V. Silverstone must pay
Bacis a 3% net smelter return on all metals produced from the projects.
For further details describing the option agreement please see the Company's
prospectus dated April 18, 2006 filed on www.sedar.com.
Silverstone
has optioned up to a 60% interest in the Promontorio and Montoros projects to
Mega Silver Inc. ("Mega") as follows: Mega must spend CDN$5 million
in expenditures and issue 550,000 common shares of Mega on each project over
a 5 year period. To date, 150,000 common shares for each project have
been issued and received by Silverstone. Mega can earn an additional
10% interest in the projects by delivering a feasibility study to Silverstone
by December 31, 2017. Silverstone has the right to earn back a 20%
interest (for an aggregate 50% beneficial interest). For further
details on the option agreement terms please see the Mega press release dated
September 18, 2007.
Mr. Hugh Willson, P.Geo., Vice-President, Exploration of Silverstone, who is
a "qualified person" under National Instrument 43-101, has reviewed
and approved the technical aspects of this news release.
ABOUT
SILVERSTONE
Silverstone
is a Canadian based public silver mining company with 100% of its revenue
from silver production. More information is available online at: www.silverstonecorp.com.
For further
information about the Company, please contact:
Chris Tomanik or Mark Patchett, Telephone: (604) 637-8151 / Facsimile: (604)
688-2180
Email: ctomanik@silverstonecorp.com
or mpatchett@silverstonecorp.com
THE TSX
VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.
This press
release contains "forward-looking information" that is based on
Silverstone's current expectations, estimates, forecasts and
projections. This forward-looking information includes, among other
things, statements with respect to Silverstone's mineral discoveries, plans,
outlook and business strategy. The words "may",
"would", "could", "should", "will", "likely",
"expect," "anticipate," "intend",
"estimate", "plan", "forecast",
"project" and "believe" or other similar words and
phrases are intended to identify forward-looking information.
Forward-looking
information is subject to known and unknown risks, uncertainties and other
factors that may cause Silverstone's actual results, level of activity,
performance or achievements to be materially different from those expressed
or implied by such forward-looking information. Such factors include,
but are not limited to: projected sales or production rates;
uncertainties related to drilling results; the ability to raise sufficient
capital to fund exploration; changes in economic conditions or financial
markets; changes in prices for costs; litigation, legislative, environmental
and other judicial, regulatory, political and competitive developments;
technological or operational difficulties or inability to obtain permits
encountered in connection with exploration activities; and labor relations
matters.
This list is
not exhaustive of the factors that may affect our forward-looking
information. These and other factors should be considered carefully and
readers should not place undue reliance on such forward-looking
information. Silverstone disclaims any intention or obligation to
update or revise forward-looking information, whether as a result of new
information, future events or otherwise.