HILTON HEAD, S.C., Dec. 20, 2011 /PRNewswire/ -- Silver Scott Mines, Inc. (OTC: SILS.pk) is pleased to announce the execution of a 10 year extendable surface land agreement for exploration within more than 4000 hectares held by the company, and within which up to 100 hectares is permitted with high impact work including mining. The agreement that was recently completed allows the mining activities within the 100 hectare tract in mineral concessions held by the company. The community vote was unanimous in favor of the proposal which included a .7 of 1 percent production royalty and a 5 year review process with the community. This completed agreement allows the company to move forward with drilling of the gold bearing oxidized mineralized zone and further detailed assessment of production with a technical report in 2012. In addition the concession application announced in Sept. 30, 2011, was recently granted two concession titles totaling 11,563 has. of the 12,000 application.
The Quitovac mineralized zone is a disseminated to vein bearing gold zone hosted in gneiss and schist that is located in Northwest Sonora state of Mexico near the community of Quitovac. A historic inferred gold resource was reported at 112,125 oz. of gold by Santa Cruz in 1997. That report and resource calculation by Santa Cruz stated an average grade of 3.14 g Au/tonne. This resource calculation was done prior to implementation of standardized resource calculation procedures and methods established by Canadian government in NI 43-101. This reported resource is historical by definition and does not meet the currently established methods and should only be utilized for informational purposes and not relied on as factual.
The mine site area covers a zone about 800 meters in length by 150 meters of width with nearly 100 older drill holes and ancient mine workings. The Quitovac mineralized zone is similar to nearby La Choya deposit (360,000 oz. Au produced in mid-1990's) and the currently producing Herradura mine complex (reported resource of plus 10 million oz. Au owned by Fresnillo PLC and Newmont Mining).
Mel Herdrick, Chief Geologist for the company, who has reviewed and approved this release commented, "We expect drilling to begin soon that will define and expand the gold mineralized zone. We now hold more than 15,000 hectares in this area with exploration and production potential. Our goal, in line with our overall corporate strategy, is to explore, define, and initiate production of gold and silver by heap leach mine processing and continue to expand with operation."
For further information please contact:
Silver Scott Mines, Inc.
301 Central Ave. #384
Hilton Head, SC 29926
The source of this news release is Silver Scott Mines, Inc. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.
SOURCE Silver Scott Mines, Inc.