Silver
Standard Resources Inc.: San Luis Gold Resources Increase by 31%
VANCOUVER, BRITISH
COLUMBIA, Dec 2, 2008
(Marketwire via COMTEX News Network) -- Silver Standard Resources Inc. (TSX:SSO)(NASDAQ:SSRI)
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The San Luis Joint
Venture is pleased to report a 31% increase in measured and indicated gold
resources at the San Luis Project, with measured resources of 61,000 troy
ounces of gold, indicated resources of 287,000 troy ounces of gold and
inferred resources of 3,600 troy ounces of gold. This resource estimate was
undertaken following a review of the prior resource estimate announced in
November 2007.
The new mineral
resource estimate, which was prepared by independent qualified persons
Michael Lechner of Resource Modeling, Inc. and Donald Earnest of Resource
Evaluations, Inc., incorporates all existing data, including additional
sample results not included in the November 2007 mineral resource estimate,
and uses a cut-off grade of 6 g/t gold-equivalent.
Mineral Resource Summary(i) - November 2008
Sil-
Sil- Gold ver Con- Con- Gold-
Gold ver Grade Grade tained tained Equiv-
Grade Grade (oz/ (oz/ Gold Silver alent
Category Tonnes (g/t) (g/t) Tons ton) ton) (ounces) (ounces) (ounces)
Measured 55,000 34.3 757.6 61,000 1.00 22.1 61,000 1,345,100 81,700
Indic-
ated 429,000 20.8 555.0 473,000 0.61 16.2 287,000 7,658,200 404,800
Measured
and
Indic-
ated 484,000 22.4 578.1 534,000 0.65 16.9 348,100 9,003,300 486,500
Inferred 20,000 5.6 270.1 22,000 0.16 7.9 3,600 174,900 6,300
(i) Gold-equivalent ounces assume a 65:1 Au:Ag ratio based on US$600/troy
ounce gold and US$9.25/troy ounce, and silver and metallurgical
recoveries and net smelter returns are assumed to be 100%. Contained
metal may differ due to rounding.
Resources were
estimated in a 1 meter by 3 meter by 5 meter block model using a dynamic
isotropy search based upon distance from vein boundaries with a three pass
inverse distance cubed algorithm and tabulated using a gold-equivalent
cut-off grade of 6 g/t.
A feasibility study on
placing the project into production has been initiated and is expected to be
completed in the first half of 2009. An environmental impact study has also been
initiated and is expected to be completed by the end of 2009. The Joint
Venture is currently negotiating a long term land access agreement.
Joint Venture Interests
Silver Standard holds a 55% interest in the San Luis joint venture
and Esperanza holds 45%. Silver Standard has elected to increase its interest
in the joint venture to 70% by funding costs required to complete a
feasibility study. Thereafter, Silver Standard has the right to increase its
interest to 80% by funding the property through to production.
About Silver Standard: Silver Standard Resources Inc. is a
silver resource company focused on bringing its 100%-owned Pirquitas Mine
into production and continues to seek growth through exploration and
development of its silver projects.
About Esperanza Esperanza is an exploration company focused on
precious metals and is founded on the experience and success of its
management and field teams in discovering ore bodies. Its properties include
the San Luis high-grade gold and silver discovery in central Peru and the
100%-owned Cerro Jumil bulk-tonnage gold project in Morelos State, Mexico. It
has other exploration interests in Peru, Mexico and Bolivia. The company's
objective is to take properties up to the resource definition stage and then
find partners to take them into production.
QUALIFIED PERSON:
Kenneth C McNaughton, M.A.Sc.,
P.Eng., vice president, exploration, Silver Standard Resources Inc., is the
Qualified Person (QP) under NI 43-101 responsible for the San Luis
exploration program. He has verified the data disclosed in this news release,
including sampling, analytical and test data. Field work has been conducted
by joint-venture personnel under his supervision. All samples were submitted
to ALS Chemex in Lima, Peru for analysis.
For silver, initial analysis was completed using four-acid
digestion with an ICP finish. For samples that assayed over 200 ppm silver,
re-analysis was completed using four-acid digestion with an AA finish. For
samples that assayed over 1 kg silver, re-analysis was completed using fire
assay with a gravimetric finish. For gold, initial analysis used a 30-gram
charge for fire assay followed by an AA finish. For samples that assayed over
10 grams gold in the initial analysis, re-analysis of the 30 gram assay
charge was completed using fire assay followed by a gravimetric finish.
Cautionary note to U.S. investors concerning disclosure of
estimates of mineral resources and contained ounces of gold and silver: The
terms "measured resource", "indicated resource" and
"inferred resource" used in this news release are Canadian
geological and mining terms as defined in accordance with National Instrument
43-101, Standards of Disclosure for Mineral Projects of the Canadian
Securities Administrators using the guidelines set out in the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards
on Mineral Resources and Mineral Reserves, adopted by the CIM Council as may
be amended from time to time by the CIM. We advise U.S. investors that while
such terms are recognized and permitted under Canadian regulations, the SEC
does not recognize them. U.S. investors are cautioned not to assume that any
part or all of the mineral deposits in the measured and indicated categories
will ever be converted into reserves.
"Inferred resources" have a greater amount of
uncertainty as to their existence, and greater uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher category.
Under Canadian rules estimates of inferred mineral resources may not form the
basis of feasibility or other economic studies. U.S. investors are cautioned
not to assume that any part or all of an inferred resource exists, or is
economically or legally mineable.
Disclosure of gold and silver resources expressed in ounces in
the mineral resource categories in this news release are in compliance with
Canadian National Instrument 43-101, but does not meet the requirements of
Industry Guide 7, Description of Property by Issuers Engaged or to be Engaged
in Significant Mining Operations, of the SEC, which will accept only the
disclosure of tonnage and grade estimates for non-reserve mineralization.
SAFE HARBOR: Some statements in this release are forward-looking
in nature. The United States Private Securities Litigation Reform Act of 1995
provides a "safe harbor" for certain forward-looking statements.
Such statements include statements as to the potential of the San Luis
property, the ability to finance further exploration, to permit drilling and
other exploration work, the availability of drill rigs, and the ability to
permit, finance and develop a mine on the property. The forward-looking
statements involve risks and uncertainties and other factors that could cause
actual results to differ materially, including those relating to exploration
and bringing properties into production. Please refer to a discussion of some
of these and other risk factors in Silver Standard's Annual Information Form
filed with the Canadian securities regulators and both companies' Form 20-F
filed with the U.S. Securities and Exchange. The forward-looking statements
contained in this document constitute management's current estimates as of
the date of this release with respect to the matters covered herein. The
companies expect that these forward-looking statements will change as new
information is received and that actual results will vary, possibly in
material ways. Forward-looking statements are based on the beliefs,
expectations and opinions of the managements on the date the statements are
made, and the companies do not assume any obligation to update
forward-looking statements if circumstances or managements' beliefs,
expectations or opinions should change. For these reasons, investors should
not place undue reliance on forward-looking statements.
(Source: Silver Standard Resources Inc.)
SOURCE: Silver Standard Resources Inc.
Silver Standard Resources Inc.
Robert A. Quartermain
President
(604) 689-3846
(604) 689-3847 (FAX)
Silver Standard Resources Inc.
Paul LaFontaine
Director, Investor Relations
N.A. Toll Free: 1-888-338-0046 or Direct: (604) 484-8212
Email: invest@silverstandard.com
Website: www.silverstandard.com