SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

November 27, 2009 09:49 ET

SNS Silver Acquires Large, High Grade Gold Project at Emerald Lake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2009) - SNS Silver Corporation ("SNS" or the "Company") (TSX VENTURE:SNS) has entered into a definitive agreement to which SNS has received the exclusive option to acquire 100 per cent of Northern Nickel Mining Inc.'s interest in the Emerald Lake Gold project consisting of 15 mining leases and 31 mining claims located in Afton and Scholes townships in the Sudbury mining district of Ontario.

The project is easily accessible by Hwy 805, and has much existing site infrastructure that will be of benefit to advancing the project.

Historical information, derived from the records of Noramco Mining Corp., indicate that in 1986 the property is reported to have hosted a global geological resource of 617,000 ounces Au, contained within 2.4 million tonnes (grading 0.26 ounce per tonne). The resource is considered historical in nature and as such is based on prior data and reports prepared by previous operators, not defined as required by NI 43-101. The work necessary to reclassify the resource has not been completed and the resource estimates therefore, cannot be treated as NI 43-101 defined resources verified by a qualified person. This resource should not be relied upon, and there can be no assurance that any of the resources, in whole or in part, will ever become economically viable.

The deepest intercept recorded on the property cut 84 feet of 14 g/t Au below 1,000 feet vertically, with many other high-grade drill intersections (0.25 to 0.35 ounce per ton) located between the 600-foot elevation and the lowest level at 1,000-foot elevation.

David Greenway, president of SNS, comments: "SNS now has the opportunity to continue with the historical exploration programs that delivered excellent grades over large intersections. We plan to pick up where Noramco left off and continue the quest of discovering a larger resource at Emerald Lake."

The property is developed by, five levels off of a vertical shaft to 750 feet, and two levels off of an inclined winze to 1,000 feet. All of the past production took place above 700 foot elevation. Ramp development reaches to about 800 feet vertically providing good access to evaluate the high-grade areas.

David Greenway, president of SNS Silver, states: "This acquisition represents the desire of SNS Silver to become a premier gold exploration and development company. The advanced nature of this project in terms of existing development and contained historical resources coupled with tremendous upside exploration potential assures that our shareholders will be exposed to the current investor demand for new gold discoveries. We are excited to provide our shareholders to what we believe has the potential to be a high-grade substantial deposit at Emerald Lake.

With only a 1,600-foot length of a four-mile structure extensively explored, and with high-grade known below the 1,000-foot level at the east end of the developed areas we feel there is a great opportunity to expand the resource."

The strategic plan moving forward will be to confirm, delineate and expand the mineral resource by initiating a surface drill program followed by dewatering and rehabilitation of the existing ramp that will allow for underground drilling. SNS will then commence an extensive program to test the unexplored targets of the Golden Rose property. This program will be outlined for shareholders shortly.

The transaction: SNS will earn 100 per cent of the Golden Rose project by paying cash of $650,000, two million common shares of SNS over a period of three years, and by completing exploration commitments on the property in the amount of $750,000, the payments of cash, shares and exploration commitments falling due in installments.

In addition, as part of the terms of acquisition, SNS has paid to pay Scorpio Gold $250,000 cash and 400,000 shares as compensation for moneys advanced by Scorpio Gold for prior exploration work undertaken on the claims financed by Scorpio Gold and to obtain a release of Scorpio Gold's right of first refusal to acquire the Golden Rose property.

David Greenway, president of SNS Silver, further states: "The opportunity for SNS to acquire a project of this nature, under these terms, in a mining friendly region and proven gold camp was not one to be taken for granted. We at SNS Silver wish to rapidly advance our exploration program to provide an exciting news flow for our shareholders in this unprecedented gold bull market. We view the Emerald Lake Project as an exceptional building block in what is sure to be the first of many significant acquisitions in this space."

A finder's fee is due and payable in connection with the transaction.

Stephen Mlot, PEng, an officer and director of Northern Nickel Mining Inc., is the qualified person responsible for the technical data presented in this news release.

SNS Silver Corporation (TSX VENTURE:SNS) is an exploration mining company, whose assets include a number of near term production projects in geopolitically secure Idaho, USA. The 100% owned Crescent Mine consists of 24 patented mining claims over approximately 350 acres. These adjacent properties operated independently to produce nearly 400 million ozs of silver historically and their recent merger is expected to enhance exploration opportunities on their once disputed boundary.

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