Silver Standard cuts silver at Challacollo

Vancouver — Silver Standard Resources (SSO-T) has hit several high-grade silver intersections in its 2,300-meter, 14-hole reverse circulation drill program at its Challacollo silver property in the Region of Tarapaca in northern Chile.

Silver Standard has designed the drill program to in-fill the Lolon vein, which represents one of four known mineralized structures on the property. In addition the company tested the north and south extensions of the vein.

The largest intervals were hit in holes CHAG-13 and CHAG-15. Results are as follows;

• Hole CHAG-13 intersected 15.4 metres (true width) averaging 249.6 grams silver per tonne, 1.59% lead and elevated levels of zinc, starting at a down-hole depth of 142 metres.
• CHAG-15 intersected two sections of the Lolon vein, one assayed 350.9 grams silver and 0.26% lead over 8.6 metres (true width) and the other cut 312.2 grams silver, 2.17% lead and 1.43% zinc over 9.2 metres (true width).

The company reports that holes 14 and 15 are significant since they flank a previously drilled hole (CHAG-01) which intersected only weak silver mineralization over narrow widths (3.8 ounces of silver per ton over 6.6 feet). CHAG-01 is now believed to have been stopped prior to intersecting the main Lolon vein mineralization. Hole 14 intersected 5.7 metres (true width) averaging 137.5 grams silver and 0.19% lead, starting 137 metres down-hole. this was followed by a 2.1-metre interval that averaged 246.7 grams silver and 0.42% lead starting 161 metres down-hole.

Holes CHAG-08 and 09 tested the southern extension of the Lolon vein toward the San Francisco adit which is the location of limited historic mining. The two holes were drilled about 250 metres apart and results are as follows;

• Hole CHAG-08 cut 2.1 metres (true width) grading 98.0 grams silver and 3.81% lead starting 43 metres down hole.
• Hole CHAG-09 intersected 4.3 metres (true width) averaging 191.0 grams silver and 0.78% lead starting 74 metres down-hole.

Silver Standard states that these two holes show the potential for the continuation of mineralization over a strike of 800 metres. More highlights from the recent drill program are as follows;

• Hole CHAG-10 cut 5 metres (true width) averaging 67.2 grams silver and 2.88% lead starting 122 metres down-hole.
• Hole CHAG-11 intersected 2.1 metres (true width) grading 593.5 grams silver and 1.64% lead, starting 47 metres down-hole. This was followed by a 3-metre interval that averaged 122.7 grams silver and 7.8% lead, starting 176 metres down-hole.
• Hole CHAG-12 intersected 6.9 metres (true width) averaging 307.5 grams silver and 0.25% lead, starting 33 metres down-hole. This was followed by a 7-metre interval that assayed 151 grams silver and 1.39% lead, starting 136 metres down-hole.

Silver Standard expects assay results from six additional holes shortly. The four known vein systems at Challacollo, plus five others that have been identified through geophysics, represent a high sulphidation epithermal mineralizing system that has not been tested below 240 meters depth. Silver Standard optioned the Challacollo property from Sociedad Contractual Minera Septentrion of Santiago, Chile.