Penasquito resource updated

Vancouver — Western Silver Corp. (WTC-T), formerly known as Western Copper Holdings, has announced a revised resource estimate for the Chile Colorado zone Mexico’s Zacatecas state. The zone is part of the Penasquito silver-gold-lead-zinc property.

An independent estimate completed by SNC Lavalin points to an indicated resource of 118 million tonnes grading 41.85 grams silver and 0.36 gram gold per tonne, plus 0.38% lead and 0.89% zinc. This is based on a net-smelter-return cutoff of US$4 per tonne. An additional 58.6 million tonnes grading 28.98 grams silver, 0.31 gram gold, 0.24% lead and 0.69% zinc are in the inferred category.

The higher-grade core of the deposit above a US$10-per-tonne NSR cutoff hosts an indicated resource of 40.6 million tonnes averaging 73 grams silver, 0.54 gram gold, 0.6% lead and 1.44% zinc

The NSR values reflect the value of metals recovered after smelting charges and transportation costs are deducted. The base metal prices used for NSR values are US$5 per oz. silver, US$325 per oz. gold, US23 per lb. lead and US45 per lb. zinc. The mill recoveries, metal distribution, smelting and transportation charges used by SNC Lavalin are conservative estimates provided by Western Silver.

The lower metal grades in the inferred category reflect a 90-metre drill spacing pattern and could increase as a result of infill drilling.

The Chile Colorado zone remains open to the southwest, northwest, east and below a depth of 300 metres.

The Penasquito project represents an intrusion-related silver-gold-zinc-lead mineral system. More than 140 rotary and core holes (51,743 metres) have been drilled at Penasquito since 1994, including 48 holes (20,462 metres) by Western Copper in 2002.