Silver Standard cuts more silver at San Marcial (September 02, 2002)

Vancouver — Silver Standard Resources (SSO-V) has intersected significant silver mineralization during an 8-hole drill program at its San Marcial silver property, 90 km east of Mazatlan, Mexico.

The recent program consisted of infill drilling of near-surface mineralization discovered earlier this year.

During the earlier program, Silver Standard drilled 1,442 metres into two parallel silver vein systems. Results confirmed that the silver-rich breccias in the vein systems extend for more than 350 metres along strike and continue downdip for at least 190 metres. The two veins are separated by 20 metres and vary in true width from 0.5 to 36 metres.

Silver mineralization is hosted in the silicified and hematized breccias and quartz veins, and also occurs as disseminated silver sulphides. Mineral associations are commonly argentite, acanthite, native silver, sphalerite, galena, chalcopyrite and pyrite. Silver Standard believes there is good 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 15 cut 41.6 metres averaging 80 grams silver per tonne, 0.51% lead and 1.11% zinc starting at 78 metres down-hole. This included a 9.6-metre interval that averaged 196.9 grams silver, 0.7% lead and 2.1% zinc.

– Hole 16 intersected 21.6 metres of 76 grams silver, 0.34% lead and 0.98% zinc starting at 27 metres down-hole. This included a 2.6-metre section of 209.8 grams silver, 0.33% lead and 4.73% zinc.

– Hole 17 intersected 3 metres of 215 grams silver, 0.2% lead and 0.32% zinc starting at 169.5 metres down-hole.

– Hole 18A cut 25 metres of 175 grams silver, 0.33% lead and 0.51% zinc starting at 38.8 metres down-hole, including a 10-metre interval of 296.3 grams silver, 0.34% lead and 0.48% zinc.

– Hole 20 hit 2 metres of 366.5 grams silver, 0.44% lead and 0.56% zinc starting at 102.5 metres down-hole, followed by a 34.5-metre interval of 101 grams silver, 0.48% lead and 1.4% zinc starting at 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 an agreement, 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.