Huldra Silver Inc. (the "Company" or
"Huldra Silver") (TSX VENTURE:HDA - News) is pleased to announce
it has received complete assay results from an 17 hole HQ sized diamond drill
program completed in September 2010. The samples assayed up to 13736 gm/tonne Ag (441.61 Oz/tonne),
60.05% Pb, 2.49% Zn, and 2.33% Mn
in hole number 8 from 14.19m to 14.26m. All samples
were analyzed at the ACME laboratory in Vancouver, B.C., a full service, ISO
9001:2008 accredited analytical laboratory. All lab quality control protocols
were observed. A complete list of assays and summary results along with a
drill location map can be viewed on our website at www.huldrasilver.com.
Drill Program Summary and Highlights
The first 15 holes of the drill program
were designed to follow up on surface sampling with assays of up to 6650 g/tonne Ag were received (August 25, 2010 news release)
with the primary objective was to determine whether a small open cut bulk
sample of up to 10,000 tonnes can be removed.
Management has determined that based on the surface showing and the drill
results the company will proceed with the bulk
sample in the spring of 2011.
Assay Highlights:
Hole 5 from 6.55-6.7m: 2121 g/tonne Ag 24.3%Pb 3.99%Zn 2.05%Mn
Hole 8 from 7.65-8.0m: 2584 g/tonne Ag 47.98%Pb 2.27%Zn 1.87%Mn
Hole 8 from 14.19-14.26m: 13736 g/tonne Ag 60.05%Pb 2.49%Zn 2.33%Mn
Hole 9 from 5.98-6.06m 6393 g/tonne Ag 74.41%Pb 1.22%Zn .89%Mn
Hole 9 from 6.5-7.07m: 1259 g/tonne Ag 3.73%Pb .73%Zn 2.25%Mn
Hole 9 from 7.07-7.31m: 4921 g/tonne Ag 31.25%Pb 9.52%Zn .99%Mn
Hole 10 from 6.09-6.29m: 5072 g/tonne Ag 55.82%Pb 2.75%Zn .45%Mn
Hole 10 from 8.63-8.71m: 2989 g/tonne Ag 20.77%Pb 1.43%Zn 1.15%Mn
Hole 15 from 17.76-17.9m: 781 g/tonne Ag 7.68%Pb .23%Zn 2.83%Mn
Hole 15 from 17.9-18.1m: 462 g/tonne Ag .96%Pb .49%Zn 1.57%Mn
Hole 15 from 18.1-18.5m: 1053 g/tonne Ag 7.59%Pb 1.48%Zn 4.11%Mn
Holes 1, 2, 3 and 4 failed to intersect
significant mineralization and were stopped shortly after passing through a
dyke that may have disrupted the mineral zone. Hole 7 was drilled down a
previously unmapped fault. Upon review of the logs and program we believe
that there are at least 3 different dykes in close proximity to one another
and to mineralization. Samples were selected on the basis of visual
observation of the cores that were split manually, with one half being
submitted for analyses.
Holes 16 and 17 were drilled
approximately 190m to the east of the historic East Zone in what has been
described previously as the East Zone extension. Preliminary observations are
that the area is distinctly different than the east zone in mineralization
and structure. Massive Galena was encountered at surface on this structure
100m further east assaying 2920 g/tonne Ag and
38.5% Pb over .3m (October 13, 2010 news release).
For future reference this will be referred to as the JK Vein.
Assay Highlights:
Hole 16 from 6.1-6.7m 256 g/tonne Ag .79%Pb 10.01%Zn 14.56%Mn
Hole 17 from 8.53-8.83m 166 g/tonne Ag .96%Pb 1.76%Zn 9.8%Mn
The JK vein occurs in weather arkosic rocks where at shallow depths encountered at
shallow depths in Holes 16 and 17 is partially oxidized.
The vein material has a white porcelanous
appearance and minor amounts of sphalerite and no
associated dyke was encountered. Samples from the vein will be submitted to a
mineralogist for further study. The company is also reviewing previous metallurgical
studies to determine if the Manganese encountered can be extracted and
marketed.
Initial drilling in 2011 will
concentrate on the JK vein based on the size of the structure and the
encouraging initial results. Drilling in the area will also step off the JK
vein to the north and south to test for extensions of the east zone or other
mineralized dykes.
2011 Exploration and Development
Portal reconstruction and a vent raise
have been completed on Level 1 of the Main Mine area where a NI 43-101
compliant resource estimate in 2009 reported a total vein indicated resource
diluted to a mineable width of 1.2m, using a 10oz/tonne
Ag cut-off, of 33,000 tonnes grading 26.68oz/tonne Ag, 4.16%Pb, and 3.8% Zn and a total vein inferred
resource, using a 10oz/tonne Ag cut-off, of 120,000
tonnes grading 29.76oz/tonne
Ag, 2.79%Pb, and 4.36% Zn. An underground inspection has been conducted and
we will use this information to update our mine planning and design for both
a bulk sample and a full mining permit.
All of the background environmental
monitoring for this year has been completed in preparation for re-submitting
in early 2011 an application for a full mining permit. This work has been
conducted in consultation with the British Columbia Ministries of Mines and the
Environment.
In addition the company is designing a
more extensive exploration program for 2011 that will include:
-- Geochemical sampling on both a previously discovered soil anomaly in the
valley below the mine and on the Sutter Creek side of the mountain where
surface samples of up to 9221 g/tonne Ag were reported (August 25, 2010
news release). Based on these finding drill programs will be designed
for these areas.
-- Once re-construction of portal 3 has been completed underground drilling
will commence on this level to follow up on historical work.
Non-Brokered Private Placement
The Company is also pleased to announce
a non-brokered private placement (the "Offering"), which will
provide the Company with working capital to use for its Treasure Mountain
Project. The Company has agreed to issue 1,600,000 units (each, a
"Unit") at a price of $0.52 per Unit for gross proceeds of
$832,000. Each Unit will consist of one common share of Huldra
and one common share purchase warrant. Each warrant will entitle the holder
to purchase an additional common share of Huldra at
a purchase price of $0.75 per share for 18 months from the date of closing of
the Offering, subject to a right of call by the Company under certain
conditions. The Offering is subject to the approval of the TSX Venture
Exchange and applicable securities laws.
Technical information in this news
release has been reviewed and approved by Erik Ostensoe,
P. Geo., the Company's independent Qualified Person
as defined by NI 43-101. Huldra Silver is currently
working on plans to put the Treasure Mountain Project, located 3 hours east
of Vancouver, BC, into development subject to permitting and financing. The
Company is also actively assessing other opportunities for acquisition and
development.
On behalf of the Board of Directors
Ryan Sharp, MBA, President, CEO &
Director
Disclaimer for Forward-Looking
Information
Certain statements in this release are
forward-looking statements, which reflect the expectations of management
regarding the Company's overall business development objectives and plans.
Forward-looking statements consist of statements that are not purely
historical, including any statements regarding beliefs, plans, expectations
or intentions regarding the future, and include discussion of the Company's
planned work to be undertaken as a result of the Company's receipt of the
Mines Act Permit, and that the Company intends to put the Treasure Mountain
Project into development. Such statements are subject to risks and
uncertainties that may cause actual results, performance or developments to
differ materially from those contained in the statements. No assurance can be
given that any of the events anticipated by the forward-looking statements
will occur or, if they do occur, what benefits the Company will obtain from
them. These forward-looking statements reflect management's current views and
are based on certain expectations, estimates and assumptions which may prove
to be incorrect. A number of risks and uncertainties could cause the
Company's actual results to differ materially from those expressed or implied
by the forward-looking statements, including: (1) a downturn in general
economic conditions in North America and internationally, (2) the inherent
uncertainties and speculative nature associated with silver exploration, (3)
a decreased demand for silver, (4) any number of events or causes which may
delay exploration and development of the Company's property interests, such as
environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not
execute its business plan, (6) inability to finance operations and growth,
(7) inability to obtain all necessary permitting and financing, and (8) other
factors beyond the Company's control. These forward-looking statements are
made as of the date of this news release and the Company assumes no
obligation to update these forward-looking statements, or to update the
reasons why actual results differed from those projected in the
forward-looking statements, except in accordance with applicable securities
laws. Additional information about the Company and these and other
assumptions, risks and uncertainties is available in the Company's public
filings with Canadian securities regulators, available on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor Its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Contact:
Ryan Sharp
Huldra Silver Inc.
604-818-1486
ryan@huldrasilver.com / IR@huldrasilver.com
www.huldrasilver.com |