Silver Standard and Esperanza to launch Ayelen feasibility

As Silver Standard Resources (SSO-T) and Esperanza Silver (EPZ-V) begin a feasibility study to develop the Ayelen silver vein on their San Luis joint venture property in Peru, the companies will explore a nearby base metals discovery.

An initial resource estimate was released by Silver Standard and Esperanza today for the Ayelen deposit.

Measured and indicated resources total 674,000 tonnes grading 328.9 grams silver per tonne and 12.24 grams gold per tonne for a total of 265,000 oz. gold and 7.1 million oz. silver.

Under the inferred category, the companies have 14,600 tonnes grading 282.4 grams silver per tonne, 9.33 grams gold per tonne.

Metallurgical test work so far has yielded 90% recoveries for gold and 80% for silver.

Along with further metallurgical testing, the companies are applying for permits to start an underground exploration program on the Aleyen vein.

While all that gets underway the company will focus some energy on the new BP zone located 6 km southeast of Aleyen on the 250-sq.-km San Luis property.

BP was first discovered earlier this year through alteration mapping and stream sediment geochemistry. Then rock samples were collected with grades up to 2.2% copper and 11% zinc as well as precious metal anomalies.

Next a detailed geophysics study was done over the area, which showed even more anomalies.

An area of mineralized hydrothermal breccias containing altered fragments of volcanic rock with a sulfide-bearing matrix within an outcrop area of 250 metres by 450 metres which showed distinct yet overlapping copper, zinc and lead mineralization in through chip sampling.

After completing its Aleyen drill program Esperanza and Silver Standard brought a drill to the new zone and completed four diamond drill holes.

From surface, hole SL-131, drilled within outcropping breccias, yielded 45 metres grading 0.53% copper, 62.7 grams silver per tonne, 0.02 gram gold per tonne, 0.11% lead and 0.10% zinc.

Hole SL-130, drilled 300 metres northwest of the outcropping breccias returned 54 metres grading 0.11% copper and anomalous silver, gold, lead and zinc.

Hole SL-132 and 133, drilled west and southwest of the outcropping did not yield significant values.

Silver Standard currently has a 55% interest in the San Luis property while Esperanza holds the remaining 45%. Silver Standard will increase its interest to 70% by funding the feasibility study, and will up that to 80% by funding the project through to the production stage.