Silver
Standard Resources Inc.: San Luis' Initial Resource Estimate; Nearby
Porphyry-Style Base-Metal Discovery
VANCOUVER, BRITISH
COLUMBIA, Nov 15, 2007 (Marketwire via COMTEX News
Network) -- Silver Standard Resources Inc. (TSX:SSO)(NASDAQ:SSRI) and
Esperanza Silver Corporation (TSX VENTURE:EPZ) today reported that Silver
Standard has delivered an initial resource estimate for the Ayelen Vein on the companies' joint venture property in
Peru. Ayelen is one of numerous veins found to date
on the property.
In addition, the
companies report the discovery of significant porphyry-style base metal
mineralization six kilometers southeast of the Ayelen Vein.
Ayelen Vein Resource Summary - November 2007
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Contain- Contain- Gold-
Silver Gold Silver Gold ed ed Equiva-
Grade Grade Grade Grade Gold Silver lent
Category Tonnes (g/t) (g/t)(oz/ton)(oz/ton)(ounces) (ounces)(ounces)
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Measured 41,400 483.4 21.57 14.1 0.63 28,700 643,000 42,000
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Indicated 632,500 318.8 11.63 9.3 0.34 236,500 6,483,000 366,000
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Measured
and
Indicated 673,900 328.9 12.24 9.6 0.36 265,200 7,126,000 408,000
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Inferred 14,600 282.4 9.33 8.2 0.27 4,400 132,000 7,000
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Gold-equivalent ounces assume a 50:1 silver-to-gold price ratio.
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Resources were
estimated in a 3 meter
by 3 meter
by 3 meter
block model using the inverse distance squared algorithm and tabulated using
a silver cut-off grade of 40
grams per tonne. The database contained 900 individual
samples which were combined into 876 one-meter composites. It was prepared by
Doug Blanchflower, P.Geo., an independent
qualified person, as defined by Canada's National Instrument
43-101.
Underground
Exploration Program Being Permitted
Silver Standard, as
joint venture operator, is in the final stages of preparing an application
for permits to begin an underground exploration program targeting the Ayelen Vein, including further drilling. This underground
work will determine the continuity of precious metal mineralization and form
the basis of an updated resource and feasibility study.
Exploring for Other
High-Grade Structures
Exploration continues
on other known quartz veins in the vicinity of Ayelen
to identify additional high-grade structures. This work will consist of prospecting,
geological mapping and geophysical studies followed by drilling. Recent field
work has identified several other vein structures on the 25,000-hectare
property. These will be systematically sampled and, if warranted, drilled in
the coming field campaign starting in 2008.
Early Feasibility
Study Planned
Silver Standard has
announced that a feasibility study for the development of Ayelen
is expected to begin in early 2008. Preliminary metallurgical test work using
conventional hydrometallurgical processing has yielded recoveries of 90% for
gold and 80% for silver. Additional studies are underway to optimize recovery
rates.
BP Zone - A New Base
Metal Discovery
As a result of ongoing
property-wide exploration, the joint venture earlier this year identified a
large alteration zone covering 12 square kilometers,
now called the BP Zone. This area lies approximately six kilometers
southeast of the Ayelen Vein (to view map please
click on the following link: http://www.ccnmatthews.com/docs/SSO1115.pdf). It is contained within the joint venture property and represents a
separate area of mineralization distinct from the Ayelen
area of known epithermal vein mineralization.
The BP Zone was
originally recognized through alteration mapping and stream sediment
geochemistry. A follow-up program identified large areas where surface grab
samples yielded significant base metal (up to 2.2% copper and 11% zinc) and
precious metal anomalies. The program was followed by a detailed geophysical
study over the area which yielded numerous other anomalies.
The area is
characterized by mineralized hydrothermal breccias with identified outcrop
dimensions of approximately 250 by 450 meters. The breccia
contains pervasively altered fragments of volcanic rock with a sulfide bearing matrix. The rock chip sampling determined
areas of distinct, yet overlapping, copper, zinc and lead mineralization
within this zone. Anomalous silver and gold was also found.
Drilling Encounters
Porphyry-Style Mineralization
At the end of this
year's drill program, four diamond drill holes tested a number of geophysical
anomalies that are coincident with the BP Zone. Noteworthy results include:
Drill hole SL-131 was
drilled within the outcrop area of hydrothermal breccia
and from surface encountered 45 meters containing 0.53% copper, 62.7 grams per tonne
silver, 0.02 grams
per tonne gold, 0.11% lead and 0.10% zinc.
Drill hole SL-130 was
drilled approximately 300
meters northwest of the outcropping breccias and was
designed to test a geophysical anomaly. This hole encountered a 54-meter
section of hydrothermal breccia containing 0.11%
copper and anomalous silver, gold, lead and zinc. This intersection possibly
expands the area of the known mineralized breccia
or indicates the presence of multiple breccia
bodies.
Drill holes SL-132 and
SL-133 were drilled west and southwest respectively of the outcropping breccia and were designed to test additional geophysical
anomalies. Although there was porphyry-style alteration they did not yield
significant metal values.
Aggressive Drill
Program in 2008
Extensive rock
alteration and the hydrothermal breccias, as found both at surface and in the
drill holes in the BP Zone, are indicative of a porphyry-style environment
and potential associated mineralization. Silver Standard is finalizing drill
permits to allow full access to the BP Zone and is planning an aggressive
drill campaign on completion of permitting.
Joint Venture
Interests
Silver Standard holds
a 55% interest in the San Luis joint venture and Esperanza holds 45%. Silver
Standard has elected to increase its interest in the joint venture to 70% by
funding costs required to complete a feasibility study. Thereafter, Silver
Standard has the right to increase its interest to 80% by funding the
property through to production.
About Silver Standard
Silver Standard
Resources Inc. is a well-financed silver resource company that continues to
seek growth through exploration and development of its own silver projects.
About Esperanza
Esperanza is an
exploration company focused on precious metals and is founded on the
experience and success of its management and field teams in discovering ore
bodies. Its properties include the San Luis high-grade gold and silver
discovery in central Peru
and the 100%-owned Cerro Jumil bulk-tonnage gold
project in Morelos
State, Mexico.
It has other exploration interests in Peru,
Mexico and Bolivia. The
company's objective is to take properties up to the resource definition stage
and then find partners to take them into production.
QUALIFIED PERSON:
Kenneth C McNaughton, M.A.Sc., P.Eng., vice president, exploration, Silver Standard Resources
Inc., is the Qualified Person (QP) under NI 43-101 responsible for the San
Luis exploration program. He has verified the data disclosed in this news
release, including sampling, analytical and test data. Field work has been
conducted by joint-venture personnel under his supervision. All samples were
submitted to ALS Chemex in Lima, Peru
for analysis.
For silver, initial
analysis was completed using four-acid digestion with an ICP finish. For
samples over 200 ppm silver, re-analysis was
completed using four-acid digestion with an AA finish. For samples over 1 kg silver, re-analysis was
completed using fire assay with a gravimetric finish. For gold, initial
analysis of 30 gram
samples was completed using fire assay with an AA finish. For samples over 10 grams gold,
re-analysis of 30 gram
samples was completed using fire assay with a gravimetric finish.
Cautionary note to
U.S. investors concerning disclosure of estimates of mineral resources and
contained ounces of gold and silver: The terms "measured resource",
"indicated resource" and "inferred resource" used in this
news release are Canadian geological and mining terms as defined in
accordance with National Instrument 43-101, Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators using the guidelines
set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") Standards on Mineral Resources and Mineral Reserves, adopted
by the CIM Council as may be amended from time to time by the CIM. We advise U.S.
investors that while such terms are recognized and permitted under Canadian
regulations, the SEC does not recognize them. U.S. investors are cautioned not
to assume that any part or all of the mineral deposits in the measured and
indicated categories will ever be converted into reserves.
"Inferred
resources" have a greater amount of uncertainty as to their existence,
and greater uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian rules estimates of inferred
mineral resources may not form the basis of feasibility or other economic
studies. U.S.
investors are cautioned not to assume that any part or all of an inferred
resource exists, or is economically or legally mineable.
Disclosure of gold and
silver resources expressed in ounces in the mineral resource categories in
this news release are in compliance with Canadian National Instrument 43-101,
but does not meet the requirements of Industry Guide 7, Description of
Property by Issuers Engaged or to be Engaged in Significant Mining
Operations, of the SEC, which will accept only the disclosure of tonnage and
grade estimates for non-reserve mineralization.
SAFE HARBOR:
Some statements in this release are forward-looking in nature. The United
States Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking
statements. Such statements include statements as to the potential of the San
Luis property, the ability to finance further exploration, to permit drilling
and other exploration work, the availability of drill rigs, and the ability
to permit, finance and develop a mine on the property. The forward-looking
statements involve risks and uncertainties and other factors that could cause
actual results to differ materially, including those relating to exploration
and bringing properties into production. Please refer to a discussion of some
of these and other risk factors in Silver Standard's Annual Information Form
filed with the Canadian securities regulators and both companies' Form 20-F
filed with the U.S. Securities and Exchange. The forward-looking statements
contained in this document constitute management's current estimates as of
the date of this release with respect to the matters covered herein. The
companies expect that these forward-looking statements will change as new
information is received and that actual results will vary, possibly in
material ways. Forward-looking statements are based on the beliefs, expectations
and opinions of the managements on the date the statements are made, and the
companies do not assume any obligation to update forward-looking statements
if circumstances or managements' beliefs, expectations or opinions should
change. For these reasons, investors should not place undue reliance on
forward-looking statements.
(Source: Silver
Standard Resources Inc.)
SOURCE: Silver
Standard Resources Inc.
Esperanza Silver Corporation - Denver, Colorado
William Pincus
President and CEO
(303) 830-0988
(303) 830-9098 (FAX)
Website: www.esperanzasilver.com
Silver Standard Resources Inc. - Vancouver, B.C.
Robert A. Quartermain
President
(604) 689-3846
Silver Standard Resources Inc. - Vancouver, B.C.
Paul LaFontaine
Director, Investor Relations
N.A. Toll Free: 1-888-338-0046 or Direct: (604) 484-8212
Email: invest@silverstandard.com
Website: www.silverstandard.com