Vancouver, British Columbia – Silver Bull Resources, Inc. (TSX: SVB, NYSE MKT: SVBL) (“Silver Bull”) is pleased to announce further to its news release dated May 22, 2012, it has filed its updated NI43-101 Technical Report titled “Technical Report on the Sierra Mojada Silver Project, Coahuila State, Mexico” (“the Technical Report”) dated July 5, 2012 on SEDAR at www.sedar.com. The Technical Report completed by SRK Consulting (Canada) Inc. (“SRK”) contains an updated resource estimate which represents a 39% increase in the open pittable silver resource of the Shallow Silver Zone at a 15 g/t cut-off, previously reported by Silver Bull in the NI43-101 Technical Report released in November 2011. The updated resource also represents a 52% increase in the number of silver ounces of the Shallow Silver Zone that now report in the “measured and indicated” category.
Silver Resource: The mineral resource estimate for the Shallow Silver Zone contained in the Technical Report at an economic cutoff grade of 15 g/t of silver that management believes is likely accessible by open pit mining is as follows:
- A Measured silver resource of 3.688 million tonnes at an average grade of 57.0 g/t – equivalent to 6.714 million troy ounces of silver.
- An Indicated silver resource of 45.175 million tonnes at an average grade of 45.0 g/t – equivalent to 65.419 million troy ounces of silver.
- An Inferred silver resource of 8.162 million tonnes at an average grade of 40.0 g/t – equivalent to 10.496 million troy ounces of silver.
Inside Silver Whittle Pit | ||||||
|---|---|---|---|---|---|---|
Class | Cut-off | Tonnage (000s) | Ag g/t | Zn % | Silver Ounces (oz) | Zinc Pounds (lbs) |
Measured | >50g/t | 1,299 | 110 | 2.92 | 4,612,000 | 83,484,000 |
>30g/t | 2,121 | 83 | 3.32 | 5,631,000 | 154,932,000 | |
>20g/t | 3,023 | 65 | 3.77 | 6,343,000 | 250,814,000 | |
>15g/t | 3,688 | 57 | 4.06 | 6,714,000 | 329,264,000 | |
>10g/t | 4,627 | 48 | 4.50 | 7,087,000 | 458,288,000 | |
Indicated | >50g/t | 13,364 | 83 | 0.70 | 35,670,000 | 205,015,000 |
>30g/t | 26,697 | 61 | 0.70 | 52,260,000 | 410,993,000 | |
>20g/t | 38,560 | 50 | 0.68 | 61,694,000 | 577,672,000 | |
>15g/t | 45,175 | 45 | 0.67 | 65,419,000 | 665,650,000 | |
>10g/t | 50,395 | 42 | 0.66 | 67,549,000 | 735,265,000 | |
Inferred | >50g/t | 1,624 | 87 | 0.75 | 4,565,000 | 26,866,000 |
>30g/t | 4,051 | 58 | 0.59 | 7,560,000 | 52,612,000 | |
>20 g/t | 6,491 | 45 | 0.59 | 9,478,000 | 84,026,000 | |
>15 g/t | 8,162 | 40 | 0.60 | 10,496,000 | 108,227,000 | |
>10 g/t | 10,226 | 34 | 0.64 | 11,239,000 | 143,746,000 | |
Figure 1. The outline of the conceptual Whittle Pit in relation to the Shallow Silver Zone (purple) and the Zinc Exploration target.
In order to establish a reasonable prospect of economic extraction in an open pit context, the reported silver resource falls within an optimized Whittle pit shell that uses an average silver price of US$22/oz with an estimated recovery of 62% and a US$1.25/pound of zinc with an assumed recovery of 95%. Pit walls are set at 50 degrees in country rock and 35 degrees in the overburden, and mining costs have been estimated at US$1.50/tonne, silver processing costs at US$4.00/tonne, and zinc processing costs at US$42/tonne. Metal Prices are based on the “Energy Metals Consensus Forecast” from London, a comprehensive quarterly survey of over 30 of the world’s most prominent commodity forecasters, and cutoff grades and recoveries are based on two of the closest deposit analogies for the silver and zinc mineralization seen at Sierra Mojada, namely Coeur D’Alene Mine Corporation’s operating “Rochester Mine” in Nevada for the silver, and Zincore Metals Inc.’s Preliminary Economic Assessment of the “Accha deposit” in Peru for the zinc.
Mineral resources were estimated by ordinary kriging using 3-D Gemcom block modeling software in multiple passes in 5 by 5 by 5 m blocks. Grade estimates were based on capped 2 meter composited assay data. Capping levels were set at 700 g/t Ag for diamond drill holes and 900 g/t for channel samples and long holes. Blocks were classified as measured mineral resource if at least 10 composites were found in the first pass search ellipse of 5 by 5 by 20 m, and blocks were classified as indicated mineral resources if at least three drill holes and six composites were found within a 60 by 60 m search ellipse. All other interpolated blocks were classified as inferred mineral resource.
SRK prepared the Mineral Resource Estimate for the Sierra Mojada Shallow Silver Zone, and is independent of Silver Bull for purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”). The resource estimate was completed by Dr. Gilles Arseneau (P.Geo.), Associate Consultant, Geology with SRK and a Qualified Person as defined by NI 43-101.
At a 15 g/t cutoff grade for the silver the updated resource represents a 39% increase in the open pittable resource of the Shallow Silver Zone previously reported by Silver Bull in the NI43-101 Technical Report released in November 2011. It also represents a 52% increase in the number of silver ounces of the Shallow Silver Zone that now report in the “measured and indicated” category. The economic parameters used in this report for the Whittle pit are such that it takes in approximately 80% of the silver body defined so far in the Shallow Silver Zone and excludes the high grade zinc mineralization in the area.
Zinc Exploration Target: In addition to the silver and zinc resources stated above, the Technical Report also contains an additional “zinc exploration target” ranging between 4 million tonnes grading 8.4% zinc and 6 million tonnes grading 8.0% zinc which sits below and adjacent to the Shallow Silver Zone. This exploration target which forms the “Red” and “White” zinc zones has been defined by historical data containing 3,733 channels and 1,045 long holes and comprise approximately 70% of the data within these zinc zones, but has too few core drill holes to delineate a mineral resource. The potential quantity and grade is conceptual in nature, and like all exploration targets has uncertainty whether further exploration will result in a mineral resource being delineated.
About the Shallow Silver Zone: The “Shallow Silver Zone” is an oxide silver deposit (+/- zinc & lead), hosted along an east-west trending fracture-karst system set in a cretaceous limestone-dolomite sequence. The mineralized body averages between 30m – 90m thick, up to 200m wide and remains open in the east and west directions. Approximately 60% of the current 3.8 kilometer strike length is at or near surface before dipping at around 6 degrees to the east.
About Silver Bull: Silver Bull is a US registered mineral exploration company listed on both the NYSE MKT and TSX stock exchanges and based out of Vancouver, Canada. The flagship “Sierra Mojada” project is located 150 kilometers north of the city of Torreon in Coahuila, Mexico and is highly prospective for silver and zinc. Silver Bull also has mineral interests in Gabon, West Africa.
The technical information of this news release has been reviewed and approved by Tim Barry, MAusIMM, a qualified person for the purposes of National Instrument 43-101.
On behalf of the Board of Directors
“Tim Barry”
Tim Barry, MAusIMM
Chief Executive Officer, President and Director
INVESTOR RELATIONS CONTACT INFO:
Matt Hallaran
+1 604 687 5800
[email protected]
Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources: This press release uses the terms “measured resources”, “indicated resources” and “inferred resources” which are defined in, and required to be disclosed by, NI 43-101. We advise U.S. investors that these terms are not recognized by the United States Securities and Exchange Commission (the “SEC”). The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that measured and indicated mineral resources will be converted into reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.
Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations, however the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject NI 43-101.
Cautionary note regarding forward looking statements
This news release contains forward-looking statements regarding future events and Silver Bull’s future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”) and applicable Canadian securities laws. Forward-looking statements include statements regarding measured, indicated and inferred resource estimates, the potential for extraction in an open pit context and the ability to delineate a zinc resource in the zinc exploration target. These statements are based on current expectations, estimates, forecasts, and projections about Silver Bull’s exploration projects, the industry in which Silver Bull operates and the beliefs and assumptions of Silver Bull’s management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expressions, are intended to identify such forward-looking statements. Forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including such factors as the results of exploration activities and whether the results continue to support continued exploration activities, unexpected variations in ore grade, types and metallurgy, volatility and level of commodity prices, the availability of sufficient future financing, and other matters discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2011 and our other periodic and current reports filed with the SEC and available on www.sec.gov and with the Canadian securities commissions available on www.sedar.com. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements.
