Silver price cuts into Silver Standard results

Vancouver — With the price of silver hitting a fresh 8-year low, junior Silver Standard Resources (SSO-V) has tabled more high-grade results from infill and exploration drilling at the Manantial Espejo silver-gold project in Argentina’s Santa Cruz province.

The latest results comprise 1,122.3 metres (21 holes) of a planned 5,000-metre program. Crews are currently focusing on the Veta Maria area in a program consisting of near-surface infill drilling, extension drilling of the Union, Karina and Melissa veins, and exploration drilling of three newly discovered veins. A series of shallow holes, collared on 25-metre centres, are being drilled over the 700-metre strike length of the vein system. The new results come from the western half of Veta Maria, where slightly lower grades are encountered at depth compared to the eastern portion.

Highlights include:

• hole 222, which cut 2.3 metres grading 2 grams gold and 96.6 grams silver per tonne starting from a down-hole depth of 7.3 metres,
• hole 225, which intersected 1.4 metres grading 0.1 gram gold and 146.2 grams silver starting at 10.5 metres down-hole,
• hole 229, which intersected 4 metres grading 0.8 gram gold and 243.2 grams silver starting at 65.9 metres down-hole;
• hole 230, which returned 1.8 metres of 9.1 grams gold and 1,021 grams silver starting at 76.3 metres down-hole,
• hole 233, which cut 5.5 metres grading 0.4 gram gold and 330.8 grams silver starting at 40.9 metres down-hole,
• Hole 234, which cut 8.1 metres grading 0.8 gram gold and 262.3 grams silver from 43.3 metres down-hole,
• Hole 240, which cut 3 metres grading 1.7 grams gold and 189.6 grams silver from 37.3 metres down-hole.

Following the 3,000 metres of drilling slated for the Veta Maria area, 2,000 metres are planned for other veins and new targets on the property.

At last report, measured and indicated resources at the Manantial Espejo deposit totaled 4.4 million tonnes grading 263.8 grams silver and 4.51 grams gold per tonne. The inferred resource stands at 1.6 million tonnes grading 258.2 grams silver and 3.65 grams gold. Measured and indicated resources represent 73% of the total resource.

Discovered in 1989, the project consists of eight concessions covering 225 sq. km. It is situated 160 km west of the tidewater port of Puerto San Julian and is accessible via an all-weather gravel road. Geologically, the property is underlain by Jurassic-aged andesitic flows and agglomerates covered by felsic tuffs and ignimbrites. Silver and gold mineralization is associated with northwest-trending fault zones and is generally confined to continuous shoots in quartz veins.

Silver Standard holds a 10% direct interest in Manantial Espejo and has an option to earn a further 40% from Black Hawk Mining (BHK-T), which holds 90% currently.

The silver price meanwhile slipped to a fresh 8-year low, coming under pressure from a lack of demand which has plagued most of the industrial metals for last few months. Silver is primarily used in electronics, jewelry and photography.

Silver’s benchmark fix in London dropped 3 to US$4.08 per oz., the lowest fix since October 5, 1993, when prices hit US$4.05 per oz.