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Kellogg, Idaho, March 21, 2005 - Shoshone Silver Mining Company (OTC:SHSH) announced today it has
completed an initial three-month analysis of its Bilbao
project in the State of Zacatecas,
Mexico. The
property lies about 350
miles northwest of Mexico City
and 35 miles
east-southeast of the city of Zacatecas.
The Bilbao
project consists of five mining concessions covering an area of 3,305 acres and contains
zinc, copper, silver and lead deposits. An estimated 500,000 to one million
metric tons of direct shipping ore were mined from the project prior to
Shoshone�s acquisition in 2004.
Part of the analysis reviewed a prefeasibility study
done by Kilborn Engineering which considered various cut off grades to mine
the resources by open pit. The study was conducted on the oxide portion of
the Bilbao
deposit in the mid 1990�s. Resources were estimated by Watts Griffis and
McQuat using assays from 1200 samples taken from the underground workings and
glory holes. The total inferred resource used in this study was 3.2 million
metric tons grading 3.9% zinc equivalent. This resource also contains
additional silver and lead credits.
Several economic scenarios from the prefeasibility
study produced positive cash flows and rate of return as high as 42.1%.
The exploration work carried out so far consisted of
reviewing and improving the geological data generated by previous exploration
done, primarily, by Phelps Dodge. The objective was to thoroughly examine the
Bilbao
underground and surface workings to determine if the resource used in the
prefeasibility study can be converted to proven reserves and to see if
additional potential exists to increase the resource. Paul Dircksen,
Shoshone�s General Manager stated �After our analysis of the project, we feel
positive that this goal can be achieved through limited drilling programs�.
Plans are currently being prepared for drilling
operations to further explore the deeper underground workings of the mine,
possible feeder channels and an anomaly discovered to the northwest of the
project.
Shoshone Silver Mining Company was founded in 1969
as a silver exploration, development and production company centered on its
Lakeview Mine and Mill, south of Lake
Pend d'Oreille in northern Idaho. Shoshone has
acquired several formerly producing precious and base metal properties in
northern Idaho
in preparation for a return to production at Lakeview. Shoshone also
maintains a diverse portfolio of mineral exploration projects across the
western United States and Mexico.
Shoshone stock trades on the OTC Market under the symbol "SHSH".
Certain statements contained in this press release
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are based on
beliefs of management as well as assumptions made by and information
currently available to management. Forward-looking statements are subject to
risks, uncertainties and other factors that could cause actual results to
differ materially from expected results.
CONTACT
INFORMATION
Shoshone Silver Mining Company
Paul Dircksen, General Manager
Kellogg, ID 83837
Office Telephone: 208-786-6980
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