Silver Bull Resources, Inc. (TSX:SVB)(NYSE MKT:SVBL)(NYSE Amex:SVBL) (“Silver Bull”) is pleased to announce it will expand its underground Termite “twinning” drill program presently targeting the “high grade silver zone” into the “high grade zinc zone”, a zone of mineralization which sits adjacent to and below the silver mineralization. The planned initial program in the high grade zinc zone will consist of 2,000 meters of diamond core drilling.
- The 2,000 meter underground “core” drill program will target the zinc “exploration target” situated below and adjacent to the Shallow Silver Zone, defined primarily by historical “long hole” drilling and channel samples.
- Long holes and channel samples were either restricted to a 5m x 5m x 20m sphere of influence or disregarded in the July 5, 2012 NI43-101 resource report completed by SRK Consulting (Canada), Inc. (“SRK”) and resulted in SRK defining the Zinc Zone as an “exploration target”.
- Of the 924 long holes with >4% Zn which currently define the high grade zone of the zinc “exploration target”, 517 holes have average weighted intercepts >8% Zn and include; 27.78% Zn over 11 meters, 25.43% Zn over 9 meters, 24.35% Zn over 13 meters, and 21.89% Zn over 11 meters.
- Silver Bull intends to increase the “confidence” in the 2,700 historical long hole data set, which represents 37,873 meters of underground drilling, by twinning and comparing the assay results with nearby long holes, and subsequently upgrade the “exploration target” to a NI43-101 compliant resource.
High Grade Zinc Zone: The 1.5 kilometer long “high grade zone” of zinc mineralization has been classified as an “exploration target” by SRK ranging between 4 million tonnes to 6 million tonnes estimated at an average grade of between 8% to 8.4% zinc. The Zinc Zone has largely been defined by almost 2,000 “long holes” – a 10 to 20 meter long drill hole which “grinds” through the rock to produce “rock chip” samples which total approximately 25,000 meters of drilling. A total of 924 holes have significant intercepts over 4% Zn, with 517 holes having significant intercepts over 8% Zn. In addition to long holes, the high grade zinc zone is further defined by a series of historical channel samples of which 3,872 have grades greater than 8% zinc.
|Table 1. Summary table of the long holes within the high grade zone over 15% Zn.|
Although the long hole assay results have all been analyzed by ALS Chemex Labs Ltd, a reputable independent laboratory, the influence of the long hole data set in Silver Bull’s recent NI 43-101 resource update on the “Shallow Silver Zone” filed on July 5, 2012 and completed by SRK has been severally restricted due to the potential for contamination and sample loss via the washing out of “fines” from the long hole rock chip samples by water used in the drilling process. Within Silver Bull’s latest resource the long holes and channel samples were restricted to a 5m x 5m x 20m sphere of influence, whereas regular core drill holes, due to their much higher degree of confidence, had a much larger 100m x 140m x 150m sphere of influence, and hence, a much larger influence on the size and grade of the deposit. After discussion with SRK it has been agreed that by twinning a number of these long holes with the more reliable “core” drilling method and then comparing and confirming the assay results with nearby long holes we hope to increase the confidence of the entire long hole data set. If there is a high correlation, this will allow SRK to give the long holes a much wider sphere of influence in a future NI43-101 resource report.
The 2,000 meter underground drill program will initially pick 6 or 7 stations within the high grade zone and “twin” the surrounding long holes for a direct assay comparison. In addition, because over 70% of the long holes ended in mineralization, the drill program will also look to push the holes further to find the extent of the ore body within this zone. A third aspect of the program will be to infill areas where there are “gaps” in the historical work.
To complete the program Silver Bull will use its own Termite underground drill rigs, which can drill up to 50 meter long BQ sized diamond core drill holes. Historically, recovery in this area has been poor so an emphasis will be placed on achieving good core recovery. Because much of the drilling will happen in areas which already have drill stations prepared, there will be very minimal preparation needed for this underground drill program.
Management believes this is a low risk drill program which will increase the confidence in the long hole data set that currently defines the Zinc Zone and subsequently enable SRK to upgrade the zinc “exploration target” classification to a NI43-101 compliant mineral resource.
Tim Barry, President, CEO and director of Silver Bull states, “When we consider that the drills will be starting off underground in high grade zinc mineralization, similar to our current underground drill program in the high grade silver zone, and drilling in an area with a tremendous amount of historical work which already defines this zone, we see this as a very low risk program. By increasing confidence in the historic long hole data set in the Zinc Zone, we expect to finally report this significant zinc body which sits below and adjacent to the Shallow Silver Zone as a 43-101 compliant resource. This will also be an extremely cost effective program as we will be using our own drills and experienced Mexican drilling crews to do this work and there is very little preparation that needs to be done to the underground workings.”
In addition to the planned underground drilling program Silver Bull continues to also push its extensive metallurgical program on the silver and zinc mineralization, as well as continuing the mapping and prospecting of a number of the Dormidos and Palomas Negros prospects – areas which are defined by extensive underground workings and what appears to be similar mineralization to the Shallow Silver Zone.
To view Figures 1 and 2, click on the following link: http://media3.marketwire.com/docs/s913m.pdf
About the Shallow Silver Zone and Zinc Zones: The “Shallow Silver Zone” is an oxide silver deposit (+/- zinc and lead) hosted along an east-west trending fracture-karst system set in a cretaceous limestone-dolomite sequence. The mineralized body averages between 30m – 120m thick, up to 200m wide and has 3.688Mt of “measured” silver mineralization at an average grade of 57g/t at a 15g/t cutoff, 45.175Mt of “indicated’ silver mineralization with an average grade of 45g/t at a 15g/t cutoff, and 8.162Mt of “inferred” silver mineralization with an average grade of 40g/t at a 15g/t cutoff 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.
In addition to the silver mineralization, a significant zinc oxide body of 997 million pounds of zinc in the “measured and indicated” category, and 108 million pounds of zinc in the “inferred” category lies immediately adjacent to, and directly underneath the silver mineralization. Further to this, an “exploration target” estimated at between 4-6 million tonnes grading between 8.0-8.4 percent lies as an extension to this zinc body at the eastern end of the mineralization. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The exploration target has been defined by historical data containing 3,872 channels and 1,045 long holes and comprises of approximately 70% of the data within the Zinc Zone, but has too few core drill holes to delineate a mineral resource.
All samples have been analyzed at ALS Chemex in North Vancouver, BC, Canada. Samples are first tested with the “ME-ICP41m” procedure which analyzes for 35 elements using a near total aqua regia digestion. Samples with silver values above 100ppm are re-analyzed using the Ag-GRA21 procedure which is a fire assay with a gravametric finish. Samples with zinc, lead, and copper values above 10,000ppm (1%) are re-analyzed using the AA46 procedure which is a near total aqua regia digestion with an atomic absorption finish.
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 flag ship “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 2 mineral licenses in Gabon, Central Africa, which are prospective for gold, manganese, and iron ore.
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, MAusIMM, Chief Executive Officer, President and Director
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 U.S. Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and applicable Canadian securities laws. Forward-looking statements include, among others, statements regarding measured, indicated and inferred resource estimates, the anticipated scope and targets of future drilling in the Shallow Silver Zone, the ability to increase the confidence of the long hole data set, and the ability to increase the resource and overall grade at the Sierra Mojada project, the ability to delineate a zinc resource in the zinc exploration target, the ability to find a suitable metallurgical process to extract both the silver and zinc on a large scale basis and the potential for mineralization in the Dormidos and Palomas Negros prospects. 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 and references to future periods, 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. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.