Silver Standard cuts more high-grade silver at Bowdens

Vancouver — Silver Standard Resources (SSO-V) has intersected more encouraging results from infill drilling at its wholly-owned Bowdens silver project, situated in New South Wales, Australia.

The 19,000 metre drill campaign has now been completed and results from an additional 42 holes are pending. Once all the results have been received, Silver Standard plans to complete a new block model resource calculation.

The 32 recently completed holes were collared in the Main Zone North and Bundarra North areas. Results confirm the continuity of mineralization between earlier holes and the company states that 16 of these holes cut thick sequences of silver mineralization in excess of 70 meters.

Highlights of some of the results from the Main Zone North are as follows;

• Hole BGR-269 cut 45 metres averaging 173 grams silver, 0.39% lead and 0.19% zinc, starting 85 metres down-hole. This included a 6-metre section that averaged 222 grams silver, 0.47% lead and 0.22% zinc.
• Hole BGR-270 cut 76 metres averaging 173 grams silver, 0.61% lead and 0.41% zinc, starting 66 metres down-hole. This included a 1-metre interval that averaged 2,090 grams silver, 3.53% lead and 8.41% zinc and a 7-metre section that averaged 285 grams silver, 1.60% lead and 0.51% zinc.
• Hole BGR-271 cut 20 metres averaging 103 grams silver, 0.38% lead and 0.57% zinc, starting 50 metres down-hole. This was followed by a 53-metre section that averaged 217 grams silver, 0.44% lead and 0.30% zinc. This included a 7-metre section that averaged 968 grams silver, 1.76% lead and 0.82% zinc and a 1-metre interval that averaged 3,710 grams silver, 0.57% lead and 2.35% zinc.

Highlights from some of the results from the Bundarra North zone are as follows;

• Hole BGR-273 cut 34 metres averaging 53 grams silver, 0.18% lead and 0.34% zinc, starting 50 metres down-hole. This was followed by a 55-metre interval that averaged 116 grams silver, 0.26% lead and 0.19% zinc, starting 95 metres down-hole. Included in this interval was a 4-metre section that averaged 356 grams silver, 0.77% lead and 0.25% zinc. The hole ended in mineralization.
• Hole BGR-246 cut 91 metres averaging 49 grams silver, 0.22% lead and 0.53% zinc, starting 19 metres down-hole. This included a 27-metre section that averaged 105 grams silver 0.35% lead and 0.72% zinc and a 3-metre section that averaged 555 grams silver, 0.90% lead and 1.62% zinc. The hole ended in mineralization.
• Hole BGR-260 cut 94 metres averaging 92 grams silver, 0.21% lead and 0.26% silver, starting 6- metres down-hole. This included a 13-metre section that averaged 216 grams silver, 0.37% lead and 0.54% zinc and a 30-metre section that averaged 139 grams silver, 0.32% lead and 0.19% zinc. The hole ended in mineralization.
• Hole BGR-262 cut 100 metres averaging 57 grams silver, 0.26% lead and 0.33% zinc, starting from surface. This included a 24-metre section that averaged 107 grams silver, 0.43% lead and 0.33% zinc, and a 6-metre section that averaged 211 grams silver, 1.14% lead and 0.61% zinc. The hole ended in mineralization.
• Hole BGR-266 cut 7 metres averaging 211 grams silver, 0.47% lead and 1.06% zinc, starting 11 metres down-hole. This was followed by a 25-metre section that averaged 28 grams silver, 0.21% lead and 0.44% zinc.

The deposit remains open to the north and northwest where mineralization is believed to extend under a hill. Silver Standard holds a 100% interest in Bowdens, located about 240 km northwest of Sydney, Australia.

Resources at Bowdens were audited by Pincock Allen & Holt in late 2001 and are based on a cut-off of 50 grams of silver-equivalent per tonne. The deposit hosts a measured and indicated resource of 36.1 million tonnes averaging 51.8 grams silver, 0.24% lead and 0.32% zinc. The inferred portion of the resource is pegged at 22.9 million tonnes averaging 42.5 grams silver, 0.20% lead and 0.30% zinc.

The company is examining the economics of mining 2 million tonnes of ore annually, producing 4.5 million ounces of silver, 4,750 tonnes of lead, and 4,500 tonnes of zinc. Low silver prices adversely affect the current economics of the silver-dominant deposit.

Meanwhile, in Chile, Silver Standard is drilling its Challacollo property and is planning to kick off a drill program at its La Valenciana property in the State of Durango, Mexico, in early May.