Silver Predator Announces Updated Resource for the Taylor Silver Project, Ely, Nevada
RENO, NV, March 18, 2013 /PRNewswire/ - Silver Predator Corp. (TSX:SPD) (the "Company") is pleased to announce an updated mineral resource estimate for the Taylor silver project in eastern Nevada, USA. The resource remains open for expansion and has demonstrated potential for higher grade silver mineralization in underlying host rocks. The Company's recent exploration work significantly contributed to a new geological model based on an increased understanding of the controls on mineralization. These new insights provide predictive tools for further resource expansion and will guide the development of an initial drill program to test new Carlin-style gold targets located southeast of the resource area.
|2013 Taylor Resource at 1.0 oz/t Cutoff Grade1|
|Measured and Indicated Resource|
|Metric Tonnes||Ag g/t||
|Meas. & Ind.||8,894,000||1.89||8,069,000||64.8||16,820,000|
1 Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Inferred Mineral Resources have a high degree of uncertainty as to their existence, and great uncertainty as to their economic feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. All figures for tonnage and ounces are rounded to the nearest thousand and may not produce exact sums due to rounding.
Taylor Resource Estimate Update
A cutoff grade of 1.0 oz/ton silver was based upon assumptions of (in USD): a $30 per ounce silver price, 90% recovery, mining costs of $2.50/ton for in situ material and $2.00/ton for unconsolidated material, mill process costs of $21.50 per ton, and G & A costs of $2.50 per ton. In order to meet the criteria for "reasonable prospects for economic extraction" as required by CIM, the block model was constrained by an optimized open pit using the baseline silver price and operating costs. All mineralization is above the water table and oxidized.
The updated Taylor resource estimate utilized assay and geologic data from the Company's recent drilling and exploration programs, together with historic drill data from previous operators. In total, there have been over 600 holes drilled comprising 9,700 feet (2,957 meters) of core and 114,800 feet (34,991 meters) of combined conventional rotary and reverse circulation drilling on the property. The resource estimation database utilized a validated subset of the historic drill holes. Many of the historic holes eliminated from the resource database were selectively sampled, and outline potentially higher grade silver mineralization around the historic Taylor underground mining area.
The geologic and resource models were based upon: a) detailed geologic mapping of the property at 1:1,200 scale, b) re-logging of available historic drill core and reverse circulation cuttings, c) interpretation of the mineralizing controls from the surface mapping and drill logging, d) comprehensive validation of the historic drill database from original lab reports and logs, e) a systematic program of check sampling for available historic drill core and reverse circulation cuttings, f) a rigorously implemented QA/QC program for the Company's ongoing drill assay results, g) detailed field surveying to establish locations of historic drill holes, waste dumps and infrastructure from historic mining operations, and h) the compilation of available records of historic underground and open pit mine production. This recent work has established a solid foundation for advancing the property for further resource delineation in areas known to be significantly mineralized, but inadequately drilled, and in newly defined target areas recently outlined by the geologic model.
The exploration data, modeling procedures, and grade estimation parameters used for the current Taylor mineral resource estimate consisted of: 1) more than 92,600 feet (28,224 meters) of validated historic and modern (i.e., 2006-2012) drill data from 480 drill holes, 2) a geologically and grade shell constrained block model, 3) drill hole defined grade continuity established through variogram analysis, 4) capped assay grades to restrict the influence of higher-grade outlier composites, 5) silver grade estimation by ordinary kriging, 6) resource classification based upon number and proximity of drill hole composites, and 7) tonnage factors established by geologic unit, as well as for unconsolidated material resulting from historic mining activity.
The Taylor resource estimate is an update to the resources originally reported in 2007, and most recently reported in 2010 (Hester, 2007, 2009, 2010). The previous NI 43-101 estimate, reported at a 1.2 oz/ton cutoff, consisted of 1,238,000 tons grading 2.50 oz/ton silver as a measured mineral resource and 5,195,000 tons averaging 2.27 oz/ton silver classified as indicated. In addition, the resource included another 757,000 tons grading 2.54 oz/ton silver in the inferred category.
The Company's programs over the last year have provided a significant improvement in the geologic model and underlying drill database used for resource estimation. The 1.0 oz/ton cutoff reflects a combination of increased silver prices balanced against higher costs since the original 2007 resource work, and contributes to the updated resource's increased tons and contained silver in the indicated and inferred categories.
The updated Taylor resource estimate conforms to guidelines and definitions established by National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy. The mineral resources for the Taylor Silver project were estimated by consulting geologist Dean D. Turner, CPG, and independent consulting geologist P.J. Hollenbeck, CPG.
Resource Expansion Potential
The Taylor resource has the potential to be expanded in several ways, including:
- Mineralization along the Argus Fault north and south of the Taylor Shaft has undergone limited open pit production, but was the primary focus of higher grade historic underground production. Over 100 historic drillholes from this area, many significantly mineralized, were cut from the resource estimate due to selective sampling and incomplete assay data. In-fill drilling may provide the confirmation needed to add this mineralization to a future resource.
- The "Bulls Eye area" is controlled by an intersecting series of north-south and northwest oriented faults that are intruded by rhyolite dikes and sills. This prime geologic environment has newly defined higher-grade silver mineralization, both near surface and continuing to depth.
- Recent metallurgical test work by McClelland on drill samples from the Bulls Eye and other areas, suggests the potential for a recoverable gold credit in addition to the silver resource. The current resource does not consider the gold potential and further work is planned to evaluate the impact of gold mineralization within and adjacent to silver mineralization included in the latest resource model.
- A sandy carbonate member of the upper Guilmette Formation is a prime host for past production in both the historic underground Taylor Mine area and in the largest historic open pit (i.e. Bishop). Untested portions of this host unit are primary targets for future near surface and deeper exploration work.
- Younger volcanics, surface disturbances from mining, and pediment gravels cover projections of favorable geology and areas with additional upside resource potential.
The Taylor property was a high grade underground silver producer between 1875 and 1892, and then again in the 1960s. Silver King Mines constructed a 1320 tpd mill and open pit mine which operated from April 1981 until March 1984 when the declining price of silver forced the mine to close.
According to an internal Silver King memorandum (#013893, dated 1/2/88), production from 1981 to 1984 was 1,471,000 tons (US short tons) at a grade of 3.50 oz/t silver. This amounts to 5.1 million contained silver ounces. Net metal production was reported as 3.8 million ounces of silver and 3,000 ounces of gold. Based on these numbers, the approximate silver recovery was 75%.
The Taylor project has the potential to be a near-term silver producing asset with water rights, mine road access, power and approximately 6,300 acres of mining claims. Further, Silver Predator's recent exploration suggests that Taylor is a Nevada sediment hosted precious metal system with a significant gold component. The Company's soil sampling results identified gold and silver mineralization east and south of the silver resource area as highlighted by several samples over 1 g/t gold, with a rock chip sample assaying 5 g/t gold (see January 21, 2013 SPD News Release). Taylor site map is available at: http://www.silverpredator.com/documents/SPD-NR13-03-Taylor-43-101-update.pdf .
The Taylor project is an epithermal, dominantly high silica, oxidized, silver deposit hosted by folded and faulted Devonian carbonate rocks of the upper Guilmette Formation. Higher grade portions of the deposit combine consistent geologic controls, including silty carbonate host rocks, north-south and northwesterly striking faults, and Tertiary rhyolite dikes and sills. These combined geologic controls create variable mineral envelopes that favor high angle orientations at higher grades in association with steep faults and adjacent lower grade bulk tonnage material associated with low to moderate angle bedding control. Silver mineralization most commonly occurs as argentite or native silver associated with the lead-antimony oxide (argentian) bindheimite, with lesser argento jarosite, the silver telluride cervelleite, amalgam, native silver and possibly pyrargyrite.
2013 Gold-Silver Exploration Work Program
The Company intends to drill high priority gold and gold-silver exploration targets developed by the 2012 mapping and soil sampling program (January 21, 2013 SPD news release) during the summer of 2013. These areas present multiple near-surface, as well as deeper stratigraphic targets that were well-defined by zones of highly anomalous gold and silver, with associated pathfinder elements, including antimony, arsenic, mercury and thallium. The newly developed target areas lie to the east and south of the current resource. The preferred target horizon for these areas will be the same upper Guilmette Formation silty carbonates that host the Taylor silver mineralization, as well as near-surface targets in the upper Pilot and Joanna that may provide additional bulk tonnage potential. This gold-silver exploration program is currently the sole focus of the Company as it offers excellent potential for a new gold discovery in addition to the potential to increase the existing silver resource.
Laboratory Analysis, Quality Assurance and Quality Control
The Company's exploration RC drill samples were collected in accordance with accepted industry standards and guidelines. The samples were submitted to ALS Chemex laboratories in Elko, Nevada and Vancouver, Canada (ISO 9001:2000 and 17025:2005 accredited) for sample preparation and analysis. Initially, all RC drill sample silver analyses were acquired by aqua regia methods for a cost effective program. Higher grade envelopes/intercepts and individual samples, generally exceeding 15 ppm, were then re-analyzed with the four-acid digestion method. All soil samples were submitted to ALS Chemex laboratories in Winnemucca, Nevada and Vancouver, Canada. The soil samples were analyzed with the super trace 51-element by aqua regia method. Assay results for silver are reported by the lab in ppm units. For public disclosure, ounce per imperial ton (oz/t) and gram per metric tonne (g/t) is used, where 34.2857 ppm is equivalent to 1 oz/t and 1 ppm is equivalent to 1 g/t. As standard procedure, the Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks, and field duplicates.
Qualified Person and consultant to the Company Dean D. Turner, CPG, and Independent Qualified Person Patrick J. Hollenbeck, CPG, have reviewed and approved the contents of this news release for disclosure. The Company will file a Technical Report in support of the disclosed resource estimate on SEDAR not more than 45 days from the date of this release.
About Silver Predator Corp.
Silver Predator's corporate mandate is to advance the previously operated Nevada-based Taylor project towards production. The Taylor project hosts a NI 43-101-compliant resource open to expansion, and has potential to be a near-term producing asset. Current ongoing exploration in the surrounding district has identified the potential for discovery of additional silver and gold deposits in the area. With quality assets in a world class jurisdiction, and an exploration team with a history of success in Nevada, Silver Predator is positioned to advance new and existing discoveries towards production.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward‐looking information that involve various risks and uncertainties regarding future events. Such forward‐looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Silver Predator's plans and objectives to differ materially from those expressed in the forward‐looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward‐looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Silver Predator assumes no obligation to update forward‐looking information should circumstances or management's estimates or opinions change.
SOURCE Silver Predator Corp.