Silver Standard cuts more silver at San Marcial (August 21, 2002)

Vancouver — Silver Standard Resources (SSO-V) recently competed a second 8-hole drill program at its San Marcial silver property, situated about 90 km east of Mazatlan, Mexico. The junior reports that it has intersected silver significant silver mineralization.

The primary objective of the recent drilling campaign was to continue infill drilling of near surface mineralization discovered during the first program which was completed earlier this year. Silver Standard drilled 1,442 metres into two parallel two parallel silver vein systems. Drilling confirmed that the silver-rich breccias in the vein systems extend for over 350 metres along strike and continue down dip for at least 190 metres. The two veins are separated by approximately 20 meters and vary in true width from 0.5-to-36.0 metres.

Silver mineralization hosted in the silicified and hematized breccias, quartz veins and as disseminated silver sulphides. Mineral associations are commonly argentite, acanthite, native silver, sphalerite, galena, chalcopyrite and pyrite. Silver Standard believes that there is excellent exploration potential for both gold and silver mineralization elsewhere on the property. Highlights of the results from the second phase of drilling are as follows:

• Hole SM-15 cut 41.6 metres averaging 80.0 grams silver per tonne, 0.51% lead and 1.11% zinc, starting 78 metres down-hole. This included a 9.6-metre interval that averaged 196.9 grams silver, 0.70% lead and 2.10% zinc.
• Hole SM-16 intersected 21.6 metres grading 76 grams silver, 0.34% lead and 0.98% zinc, starting 27 metres down-hole. This included a 2.6-metre section that averaged 209.8 grams silver, 0.33% lead and 4.73% zinc.
• Hole SM-17 intersected 3.0 metres averaging 215.0 grams silver, 0.20% lead and 0.32% zinc, starting 169.5 metres down-hole.
• Hole SM-18A cut 25 metres averaging 175.0 grams silver, 0.33% lead and 0.51% zinc starting 38.8 metres down-hole. This included a 10-metre interval that averaged 296.3 grams silver, 0.34% lead and 0.48% zinc.
• Hole SM-20 intersected 2 metres averaging 366.5 grams silver, 0.44% lead and 0.56% zinc, starting 102.5 metres down-hole. This was followed by a 34.5-metre interval that averaged 101.0 grams silver, 0.48% lead and 1.40% zinc, starting 143.9 metres down-hole.

Based on the success of its two programs at San Marcial, Silver Standard exercised its option to acquire all of Gold-Ore Resources’ (GOZ-V) option to earn a 100% interest in the property. Under the terms of agreements with Gold-Ore, Silver Standard has paid Gold-Ore US$150,000 in cash and issued 45,706 common shares of Silver Standard with a value of US$200,000.