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Friday, 25 January 2013
Silver Bull Resources hits over 16% zinc over 23 metres at Sierra Mojada ahead of updated resource estimate
Silver Bull Resources (TSE:SVB)(NYSE MKT:SVBL) has unveiled a second batch of drill results from its underground drill program in its high grade zinc zone at the Sierra Mojada project in northern Mexico, saying the zinc resource has the potential to contribute equal gross metal value to the project as the silver at the property.
The results form part of an underground program that twinned a historical "long hole" data set along a high grade silver zone and the underlying and adjacent high grade zinc zone - both located at the eastern end of the current resource.
The aim of the total 5,000 metre campaign, which concluded last month, was to increase confidence in the historical long hole data set, which represents 38,000 metres of drilling that was either "severely restricted" or discarded in the company's latest NI 43-101 resource report on the Shallow Silver zone last July.
The company said the program amounted to 6,500 metres of drilling, which resulted in the twinning of around 17% of the historic 38,000 metre data set. Silver Bull is awaiting final results, after which it will start a revised resource update on the Shallow Silver and Zinc zones - expected this quarter.
"We are very pleased with the results thus far from our twinning program in the high grade Zinc Zone," said president and CEO, Tim Barry.
"We have a significant amount of historical data that indicates that the Zinc Zone is a tremendously under recognized mineral body.
"We are by no means short of excellent silver resource expansion targets, but have a unique opportunity to quickly and efficiently increase the size and grade of the zinc resource by confirming the long hole data in the Zinc Zone. We believe the zinc resource, when properly defined, has the potential to contribute equal gross metal value to the project as the silver."
Today's zinc results are the second of five batches from the high grade zinc zone, with the company having just released the tenth batch of high grade silver holes last week.
Notable zinc holes Thursday include 40.3 metres at 10.83% zinc, including 23.25 metres at 16.67% zinc, and 43 metres at 9.58% zinc, including 4.05 metres at 17.03% zinc and 3.1 metres at 17.33% zinc.
Other significant intercepts ranged from widths of 1.9 to 35.45 metres, with grades from 5.01% zinc to 32.9% zinc.
The company said mineralization remains open for expansion in the north, south, east and westerly directions.
Based on the updated resource report figures, the company is aiming to complete the maiden PEA on the Sierra Mojada project in the third quarter of this year. The PEA will incorporate ongoing work on metallurgical optimization, hydrology, and geotechnical studies and detailed mine plan studies.
As of July last year, the Shallow Silver Zone hosted a silver resource of 72.1 million ounces in the measured and indicated category, and 10.4 million ounces in the inferred category.