Silver Standard adds Berenguela to Peruvian holdings

Vancouver A newly signed purchase agreement with a Peruvian company allows Silver Standard Resources (SSO-T, SSRI-Q) to acquire 100% of the Berenguela silver project situated 5 km west of Santa Lucia, in southern Peru.

The Vancouver-based company previously held an option to acquire the project’s silver resources by paying US$0.06 for each oz. of defined silver, and US$0.10 per oz. of additional silver defined on the property. The new agreement allows Silver Standard to own the project outright for US$2 million in cash, US$8-million worth of shares, and the grant of a 2% net smelter return royalty capped at US$3 million.

The previous option allowed Silver Standard to explore the property, which has now been tested by 222 reverse-circulation holes totaling 19,029 metres. The drilling was focused on defining surface mineralization within four contiguous mineralized zones that remain open to the north, east, and at depth.

The zones presently host an indicated resource of 15.6 million tonnes grading 132 grams silver per tonne, plus 0.924% copper, based on a silver cutoff grade of 50 grams. Inferred resources add another 6 million tonnes of 111.7 grams silver and 0.74% copper. The company notes that the entire project is being acquired for US$0.11 per oz. of contained silver resources, including copper resources.

Silver Standards also notes that it now controls the direction of the project, and plans more work to advance and add value to the project.

The company has other projects in Peru, and elsewhere in North and South America, including advanced projects in Mexico and Argentina.

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