TSX-V Trading Symbol: SNS
VANCOUVER, Aug. 29 /CNW/ - SNS Silver Corp ("SNS") has completed 21,000 feet (6,100 metres) of a planned 45,000 foot (13,500 metre), US$2.5 million surface drilling program initiated at the Company's Crescent Mine in June 2007. The surface drilling represents Phase I of a two part program which will transition into Phase II by October 2007, which involves 100,000 feet (30,000 metres) of underground drilling at an estimated cost of US$5.0 million.
The objective of the surface program is to identify ore that may exist well above the main haulage adit, the Hooper Tunnel. The primary drill targets are two parallel mineralized structures approximately 800 feet apart, the Alhambra and South Vein structures. The Alhambra vein system is responsible for most of the historic 26 million ounce production at the mine, but the South Vein was formerly known and explored only at depths of 900 metres and more below the Hooper Tunnel. In addition, two intermediate veins that were mined above the Hooper Tunnel early in the last century form secondary targets, while one newly discovered vein is also being explored.
The project lies in the productive Silver Belt of the Coeur d'Alene district and adjoins the Sunshine Mine on the east and the Bunker Hill Mine on the west. Surface mapping and drilling during the current season have produced the following results:
- St Regis formation strata that have been demonstrated to be the most
productive hosts of economic Silver Belt veins have been found to
extend upward to the surface, not part way, as had previously been
thought; and early historic production from above the Hooper level
has been found to have been hosted by these strata, not the
overlying, generally less productive Wallace formation, as had long
been believed. Wallace strata have been removed by erosion in the
part of the property that is the subject of the Phase I exploration.
- Encouraging alteration and veins extend throughout nearly the entire
length and width of the property above the Hooper Tunnel. The
intermediate veins are tentatively interpreted as possessing greater
strike and dip dimensions than formerly known.
- The apparent South Vein has been identified as extending as much as
300 metres above the Hooper Level and 600 metres west of the Crescent
Shaft. However, the current program has yet to significantly explore
this structure.
- Two ore-grade and several additional encouraging intercepts on the
Alhambra structure extend its ore potential to 390 metres above the
Hooper Tunnel and 240 metres west of major early mining on this
structure.
Selected drill results are listed below. Numbers in parenthesis next to the target indicate the number of drill intercepts in each separate target. Results that are not reported indicate low grades and widths or complete absence of vein at its projected location. Widths are believed to be true widths. The two highest grade Alhambra assays intercepted the structure 150 metres and 240 metres from the historically mined Alhambra vein with no intervening intercepts yet obtained. The remaining Alhambra assays are somewhat well scattered west of these higher grade intercepts.
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Target Hole Width Ag gm/T Pb Cu
(metre) (ounces per ton) (%) (%)
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Alhambra(12) 205a 1.5 440(13) -- NA
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Alhambra 301 0.33 220(6) 5.9 NA
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Alhambra 302 0.46 380(11) 0.65 NA
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Alhambra 501 1.5 1,470(43) -- NA
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South Vein(3) 501 1.0 240(7) --
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Steep Lead Vein(2) 102 0.21 -- 2.4 NA
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Gray Copper Vein(2) 102 0.33 170(5) -- NA
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South Vein II
(new)(1) 501 0.19 370(11) -- 0.45
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All drilling results are from split NQ core with the remaining core split retained. Silver results are for fire assays except for the Gray Copper assay, which is by AA. In addition, lead and copper assays are AA. Of the 18 holes drilled, complete results have been received for 8 holes, with partial results received on a ninth hole. Silver Belt veins are known to be problematic to evaluate from drill holes alone, so no assay results shown should be considered representative of extensive vein portions.
All assays were done by independent assayers American Analytical of Osburn, Idaho and Chris Christophersen ("Christophersen") of Smelterville, Idaho. Both assayers are believed to be reliable and Christophersen also serves as an umpire assayer for Canadian smelters.
The Phase I surface drilling program began while the Hooper Tunnel was being reopened after 20 years of inactivity. After successful repair of a large cave near the portal, tunnel renovation proceeded rapidly and underground access has now been extended more than 4,000 feet and well past the primary shaft. Through-going ventilation has also been re-established to one or more upper level adits. Installation of a new electrical substation is expected to be completed by mid September, at which time one of three drills currently drilling on the surface will be brought underground to begin Phase II drilling. Approximately 1,500 metres of cross-cutting and drifting will be required in order to complete Phase II drilling, but 1,200 metres of drifting will take place on the Alhambra and South Vein structures, so they may be examined first-hand at tunnel level.
Mr. Norman A. Radford of Wallace, ID, who is a Registered Professional Geologist in the State of Idaho and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators, has visited the Crescent property and reviewed the new geologic and drill data and reviewed and approved this press release. Mr. Radford served for many years as primary mine geologist at the Crescent Mine under its previous owner, Bunker Hill Mining Company.
SNS confirms that it does not hold any asset-backed commercial paper. SNS total cash and cash equivalents of approximately $19.5-million are held in cash and guaranteed income certificates with no fixed maturity.
(SNS: TSX-V) is an exploration mining company, whose primary asset is the 100% owned Crescent Mine located in Kellogg, Idaho - one of the largest silver districts in North America with over one billion ounces of silver produced. The property consists of 24 patented mining claims over approximately 350 acres, alongside 15 acres of surface rights. The Company currently has a comprehensive and well-funded drill program underway. Their main focus is on upper country surface drilling and underground drilling on the Alhambra and South Veins, as well as restoration of the Hooper Tunnel, drifting and cross-cutting.
Historical resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Crescent Mine will require considerable further evaluation, which the Company's management and consultants are in the process of completing. The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
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