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Exploration targed defined at Webbs Silver Project

^{Published on 2011-02-17 07:06:08 - Market Wire}
 

Silver Mines Ltd. EXPLORATION TARGET DEFINED AT WEBBS SILVER PROJECT * Exploration target between 4.0 and 7.0 million tonnes at 200-260g/t silver has been identified at the Webbs silver project. EXPLORATION TARGET * Silver Mines is pleased to announce it has defined an exploration target of between 4.0 million and 7.0 million tonnes 200-260g/t silver for Webbs Silver project. * This target has the potential to contain between 26-57 Moz of silver. * The exploration target includes the existing JORC compliant Inferred and Indicated Resources of 1.23Mt at 256g/t silver containing 10.14Moz1 * An exploration target has not brrn determined for copper, lead and zinc grades known to occur in the resource. In accordance with Clause 18 of the JORC Code, readers are advised that the defining of an exploration target provides the following: The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define Mineral Resources (aside from the resources included and previously reported) and that it is uncertain if further exploration will result in the determination of a Mineral Resource2. The quantity and grade of the exploration target (aside from the resources included) is based on conservative upper and lower limits applied to a base case estimate. The base case estimate was made using average thicknesses, grade and density data derived from the Webbs resource model and other relevant data. The 'exploration target zones' as shown in figure 1 are located within undrilled areas adjacent to the current resource (Zone 1), in undrilled areas along strike to the north and south (Zone 2) and at depth extending to 250 metres below surface (Zone 3). Mineral potential can be demonstrated in these zones based on one or more of; geology, geochemistry, geophysics and drilling. The exploration potential in the southern area of the deposit is highlighted in Figure 2 where the near surface high grade mineralisation intersected in previous drilling remains open to the south and at depth. Silver Mines has an exploration strategy designed to methodically test these exploration targets and determine if Mineral Resources are present. This will include an 8500m RC drilling program due to commence in late March. Figure 1 Webbs Long section showing exploration target zones and existing drilling (please see company website) Figure 2 Cross section 6751770N - Webbs South Looking MGA North (please see company website) DIAMOND DRILLING Silver Mines has recently completed 1,236m of diamond drilling in 11 holes in the Webbs project. The aim of the diamond program is to provide samples for metallurgical testwork, geotechnical data, provide additional assay data and improve the geological understanding of the deposit. Several previously drilled RC holes were twinned. Other holes were designed to intersect mineralisation relatively near surface and target larger gaps in the existing RC drill coverage(see Figure 1) All diamond holes intersected mineralisation and the Company is preparing a separate news release on the initial results of this program. Please direct any queries regarding the content of this report to: Charles Straw (CEO) on +61 9253 0900 or cstraw@silverminesltd.com.au 1 The information in this Document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Robin Rankin, who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and registered as a Chartered Professional Geologist (CPGeo). Robin Rankin is Principal Consulting Geologist and operator of the independent geological consultancy GeoRes. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). He consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. JORC Category Tonnes Ag g/t Cu % Pb % Zn % Contained Ag (M Oz) Inferred 1,066,000 240 0.27 0.83 1.83 8.20 Indicated 167,000 360 0.32 0.55 1.96 1.93 TOTAL 1,233,000 256 0.28 0.79 1.84 10.19 1Resource estimate for Webb's Silver Project at 70ppm Ag lower cut-off. 2 The information in this Document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, consulting geologist to SVL, who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM.) Mr Hobby has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). Mr Hobby consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.