Silver Standard to drill El Gato

By early February, a 1,400-metre drilling program will begin on El Gato, a silver property in central Mexico.

Silver Standard Resources (VSE) reports that preliminary exploration outlined a large silver geochemical anomaly measuring 2,000 metres along strike and 400 metres in width, with soil values as high as 150 grams silver per tonne. Rock chip sampling within the anomaly returned 190 metres of 29 grams, including an interval grading 65 grams over 60 metres. The company has an option to acquire the property by paying US$3.1 million in cash and shares over three years. Teck (TSE) retains a back-in right to earn a half interest.

Silver Standard is currently evaluating El Gato’s bulk-tonnage potential. Meanwhile, work continues on two of its other properties. At the San Acacio mine near Zacatecas, a sampling program is under way for both surface and underground workings. Since 1548, the Veta Grande zone has produced 180 million oz. silver, and development exists to a depth of 270 metres over 1.5 km of a known 4-km strike length.

The San Acacio, as well as the Lucifer property (also in central Mexico), will be drill-tested later in the year.

The company has 6.3 million shares outstanding and working capital of $3.5 million.