Friday, May 14, 2010 |
TSX-V:SMR |
3000 Meter Core Drilling Program to Commence on the San Marcial Silver Project |
May 14, 2010 (TSXV:SMR) Silvermex Resources Ltd ("Silvermex") is pleased to announce the planned commencement of a minimum 3,000 meter core drilling program at its San Marcial Silver project in southern Sinaloa, Mexico. The Company is also pleased to report on its recent investor relations initiatives and grant of 2,650,000 incentive stock options. The San Marcial project forms part of the Company's newly consolidated Rosario mining concession. This 16,279 ha concession includes numerous past producing mines including the Plomosas and San Juan mines which were operated by Grupo Mexico until 2001. The Company has recently completed an extensive trenching program at San Marcial which has confirmed the continuity of the high-grade vein structures at surface and was instrumental in filling in gaps in historic data and assisting in development of the new drill plan. As a result of the recent work, it is clear that there are 2 distinct, near-surface, high-grade vein structures, versus one wider lower grade zone as previously modeled. The objectives of the drill program are;
- Expand and upgrade the classification of existing resources
- Test for grade and width continuity of both the upper and lower vein structures along strike and down dip
- Collect geotechnical data on the immediate hanging wall, the mineralized zone and the adjacent footwall
- Collect sufficient material for advanced metallurgical testing
- Prepare an updated NI 43-101 resource estimate
This new information will be combined with the rework of the existing data to develop a new block model. This new model, along with a comprehensive mine plan and the results of our metallurgical test work will be incorporated into a Preliminary Economic Assessment which is scheduled for completion by Q3/Q4 of this year. The company has completed its application for the exploration permit and submitted it to the Mexican government. In anticipation of its approval, the drilling equipment has been mobilized so that drilling can commence immediately upon approval. The following table highlights results from previous drill programs. These past results clearly illustrate the proximity to surface, width of structures and high-grade nature of the deposit.
| Hole |
From (m) |
To (m) |
Interval (m) |
T width (m) |
Ag g/t |
Lead ppm |
Zinc ppm |
| SM-2 |
0.39 |
12.00 |
11.61 |
11.61 |
350.20 |
2,055.00 |
5,010.00 |
| SM-3 |
0.20 |
15.00 |
14.80 |
10.59 |
227.00 |
1,511.00 |
3,955.00 |
| SM-4 |
6.00 |
63.00 |
57.00 |
53.95 |
235.00 |
3,095.00 |
4,715.00 |
| SM-5 |
1.40 |
21.00 |
19.60 |
17.16 |
282.00 |
1,737.00 |
2,335.00 |
| SM-5 |
33.00 |
36.00 |
3.00 |
2.63 |
490.00 |
242.00 |
1,530.00 |
| SM-9 |
30.00 |
44.50 |
14.50 |
12.68 |
540.00 |
1,874.00 |
3,607.00 |
| SM-11 |
114.00 |
132.00 |
18.00 |
11.75 |
419.00 |
3,722.00 |
6,889.00 |
| SM-12 |
99.30 |
100.30 |
1.00 |
0.66 |
3,600.00 |
250.00 |
6,260.00 |
| SM-13 |
50.00 |
73.20 |
23.20 |
17.50 |
621.00 |
4,911.00 |
8,493.00 |
| SM-17 |
169.47 |
172.52 |
3.05 |
1.98 |
215.00 |
1,952.00 |
3,155.00 |
| SM-18A |
38.82 |
63.90 |
25.08 |
21.62 |
175.00 |
3,278.00 |
5,127.00 |
| SM-20 |
102.47 |
104.47 |
2.00 |
1.37 |
366.50 |
4,421.00 |
5,600.00 |
| SM0808 |
98.55 |
118.00 |
19.45 |
19.45 |
234.40 |
6,410.00 |
13,365.00 |
| SM0812 |
21.95 |
26.75 |
4.80 |
4.80 |
346.00 |
5,258.00 |
9,319.00 |
| SM0812 |
32.75 |
34.75 |
2.00 |
2.00 |
346.00 |
2,336.00 |
14,297.00 |
| SM0812 |
36.83 |
43.80 |
6.97 |
6.97 |
365.50 |
1,864.00 |
2,542.00 | Qualified PersonPursuant to National Instrument 43-101, Robert Fraser, M.Sc., P.Geo is the Qualified Person (QP) responsible for the disclosure in this news release. Investor Relations Initiatives and Options The Company is pleased to announce that it has engaged Jason Leikam to manage the Company's investor relations initiatives. Mr. Leikam will receive $6,000 per month and has been granted, subject to vesting over twelve months, 200,000 incentive stock options at an exercise price of $0.41 per share for a five year term expiring on May 12, 2015. The Company has granted 2,450,000 incentive stock options and cash bonuses up to $717,500, subject to vesting, to certain directors, officers and consultants of the Company with an exercise price of $0.41 per share and a five year term expiring on May 12, 2015. The foregoing grants are subject to the terms of Silvermex's incentive stock option plan and include certain option grants and bonuses that are subject to vesting over a one year period granted to Michael Callahan, the President of the Company and Arthur Brown, the Chairman of the Board of Directors of the Company, in lieu of the previously proposed grants of a stock bonuses. The grant of the incentive stock options is subject to receipt of all required regulatory approvals including those of the TSX Venture Exchange. On Behalf of the Board of Directors of Silvermex Resources Ltd.Duane Nelson CEO & Director For Further information, contact: Duane Nelson Director, Chief Executive Officer Vancouver, BC, Canada Tel: 604-512-8118 duane@silvermexresources.comNeither 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 release.
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Management has assumed that these will be our major projects going forward. Risks include that we are unable to satisfy environmental or other regulators, that we determine that our resources are not commercially viable, or that we have difficulties due to unavailability of labour or equipment.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results. |