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Huldra Silver Inc. (the “Company” or “Huldra
Silver”) 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
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:
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.
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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
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