COMIBOL, Bolivia’s state-owned mining company, has approved an application from Silver Standard Resources (VSE) for a joint venture on the Asiento silver property in southwestern Bolivia.
Silver Standard can earn a 100% interest in the property through staged exploration expenditures. The first phases of work, through to the completion of a prefeasibility study, are expected to take about two years and cost in the order of US$5 million.
Negotiations for a definitive agreement are expected to get under way shortly.
Asiento is an historic producer, and the mining of narrow, high-grade, silver-gold veins dates back to Spanish colonial times.
Silver Standard plans to concentrate on the bulk-tonnage potential of the property, which COMIBOL estimates at 100 million tonnes grading 130 grams silver per tonne.
Based on its due diligence work, Silver Standard reports that the property could contain a resource of at least 80 million tonnes grading 66 grams silver plus gold credits.
Ken McNaughton, Silver Standard’s vice-president of exploration, expects to start an initial exploration program on the property in September. Budgeted at about $350,000, the work will include basic geology and a full review of previous work prior to starting a drilling program next year.
Silver Standard is focusing on acquiring and developing silver properties in Mexico and South America. In addition
to Asiento, the company has three projects under option in Mexico.
Drilling is expected to start in July on two of the Mexican projects, the San Acacio and the Lucifer.
Silver Standard has 8.9 million shares outstanding and $7 million in cash and securities.
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