Monday, March 16, 2009
Silvermex Resources Initiates Preliminary Economic Assessments on its La Frazada Silver Mine
Silvermex Resources Ltd. is pleased to announce that it has initiated preliminary economic assessment studies on its 100% owned La Frazada silver project located in the historic mining district of Real del Zopilote, in the state of Nayarit, Mexico. The economic assessment will include metallurgical, processing, mining and infrastructure requirements for potential mining and mill operations. They will also focus on defining the economic viability of the project and will take advantage of the existing underground infrastructure and define the near surface potential of the deposits.
Production at the La Frazada silver mine dates back to 1890. In 1985 Compania Minera Nival completed construction of a 280 tpd mill and development of an extensive series of underground workings including a 1,300 meter tunnel that allowed access to the La Jabalina vein at 6 different levels. These workings were used to access a 900 meter long, 350 meter high ore shoot that appears to be only partial mined. Prior to shut down of the mine in 1997, due to low metal prices, it appears the operator had been preparing for a more extensive bulk mining program as 5 meter wide ramps had been completed which would allow for higher production rates.
As announced by news release dated October 14, 2008, the mineral resource at La Frazada includes measured and indicated resources of 4.7 million ozs silver (Ag), 3,189 oz Gold (Au), 31.3 million lbs. of zinc (Zn) and 11.1 million lbs of lead (Pb) and an inferred mineral resources of 3.8 million oz Ag, 3,055 oz Au, 30.8 million pounds of Zn and 10.8 million lbs of lead (Pb).
| Category |
Tonnes
X1,000 |
Ag (g/t) |
Pb (%) |
Zn (%) |
Ag (oz)
X1,000 |
Pb (lb)
X1,000 |
Zn (lb)
X1,000 |
| Measured: |
3,038 |
259.75 |
0.88 |
2.357 |
2,537 |
5,866 |
15,782 |
| Indicated: |
2,790 |
240.46 |
0.86 |
2.521 |
2,156 |
5,297 |
15,498 |
| Total M & I: |
5,828 |
250.50 |
0.69 |
2.436 |
4,693 |
11,163 |
31,280 |
| Inferred: |
5,340 |
224.88 |
0.92 |
2.616 |
3,859 |
10,860 |
30,769 |
The completed preliminary economic assessment studies will include information from additional infill drilling and sampling, additional resource estimation, preliminary mine designs, production schedules, metallurgy, process and project infrastructure design, development of environmental management and permitting programs, estimated project capital and operating costs, pre-tax cash flows, project schedule and recommendations for additional work so the project can proceed to pre-feasibility. Updated news releases will be issued as information is gathered and completed for the individual sections of the study.
A metallurgical test program has been initiated for La Frazada and preliminary results are expected in mid April. The company will take additional representative bulk samples and the resulting material will be shipped to an independent metallurgical laboratory to optimize processing and metal recoveries. The results of these tests will be used to determine flow process, plant design and equipment selection, this work is expected to be completed in late in Q2 or early Q3 2009.
Bruce Bried, B.Sc., P.Eng., joins the Company as Senior Mining Consultant and will oversee the evaluation, and economic assessments of the Company's advanced stage projects, focusing initially on San Marcial and La Frazada silver projects. Mr. Bried is a professional engineer with over 25 years experience in engineering and operating mines, his specialty is underground vein gold and silver mines.
A graduate of the Colorado School of Mines, Mr. Bried worked with Dickenson Mines Ltd. from 1980 to 1992 where he managed their underground gold mine in Red Lake, Ontario, and their underground silver mine in New Denver, BC. Between 1992 and 2001, he worked with Homestake Mining Company as Mine Superintendent at the David Bell Mine, ON and at the Eskay Creek Mine, BC, and as Mine General Manager at the Snip Mine, BC, and at the Lead Mine in SD. From 2002 to 2003 he consulted to Kinross, Canarc, Endeavour and others on a number of projects. In 2004, he was the Operating Manager of Kinross's Lupin Mine. During the 2005 to 2007 period he was VP of Operations for Endeavour Silver Corp and Canarc Resource Corp. and then President of Canarc for the first half of 2008. Since June of last year he has specialized in due diligence on a number projects in Mexico and in the USA.
Readers are cautioned that there are no assurances that all or any part of the Resource Estimate will be economically viable and although the information in this press release is based on the best available data the Company has collected to date, a material difference between the actual results and the Company's expectations may arise once further exploration is completed.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The economic assessment of the mineral resources is preliminary in nature and there is no certainty that a preliminary economic assessment will be realized.
Qualified PersonPursuant to National Instrument 43-101, Mr. William Lewis, B.Sc., P.Geo. (Micon International Inc.) is the independent Qualified Person responsible for the mineral resource estimate.
Both Mr. William Lewis and Mr. Bruce Bried have read and approved this news release.
For Further information, contact:
Duane Nelson
Vice President
Vancouver, BC, Canada
Tel: 604-638-8971
duane@silvermexresources.com
For Investor Relations, contact:
Jason Leikam
Corporate Development
Vancouver, BC, Canada
Tel: 604-638-8979
jason@silvermexresources.com
The TSX Venture Exchange does not accept 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 or our industry's 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.
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.