SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

November 21, 2007 12:51 ET

SNS Silver Corporation: Crescent Drilling Moves Underground

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2007) - SNS Silver Corporation (TSX VENTURE:SNS) has completed its 2007 Phase I surface exploration drill program with a total of 36 NQ core holes and more than 41,000 feet of drilling. The last of as many as 5 surface drill rigs that were on the property during the summer completed its final hole on November 13.

The successful surface drilling program was intended to test the uppermost elevations of two major mineralized structures (the Alhambra and South Vein) that were formerly known primarily at depths up to 1700 m below the surface and 800 to 1000 m below the Hooper Tunnel, the primary access and haulage level. In addition to these major structures, the surface drilling program was also planned to test the strike projections of two intermediate veins, the "Steep Lead" and "Gray Copper" veins.

The most important conclusions from the Phase I drilling was that strata favorable for hosting Silver Belt veins extend well above existing reserves deep in the mine, and the major structures contain high silver grades at elevations well above the Hooper Tunnel.

Conclusions from the surface drilling are summarized here. A number of unpublished assays upon which these conclusions are partially based will be released within several weeks. Additional assay results will also be released as they become available. All assay data from the surface drilling, including additional assays from the walls of veins previously described, are expected to be released during late December; one year after the property was obtained and its exploration proposed.

South Vein

Three ore-grade intercepts, across mineable widths, were obtained from the South Vein at elevations of 380 m to 440 m, (possibly 40 m higher with new results from SNS-306a and SNS-307 pending) above the Hooper Tunnel along 425 m of strike. The best of these was a reported 3.0 m at 56 opt. However, no holes were completed westward or beneath these intercepts, leaving this ore grade portion open in both directions. Easterly intercepts that did not contain ore grades may have intercepted the structure above an eastward-raking upper margin that may follow the apparent intersection of strata and vein structure, leaving this ore grade portion also open eastward at depth; these results will be released along with other pending assays. At least two early drill holes (SNS-303 and SNS-304) intended to hit the South Vein structure at depth are interpreted as having stopped short of the vein.

Several minor veins containing lead and silver values were intercepted well out in the walls of the South Vein. Assays for these minor veins will also be announced shortly. The minor veins are apparently discontinuous where seen, but they may become important elsewhere.

Alhambra Hanging Wall Vein

At least four ore grade intercepts along 425 m of strike have been obtained from the Alhambra Vein in the immediate hanging wall of the Alhambra Fault west of early upper country stoping on this structure. The best of these intercepts assayed 43 opt across an estimated true width of 1.2 m (5 ft), as reported previously. Ore that may possibly be defined by the higher grade intercepts remains open eastward to the original Alhambra ore body and downward to the old Alhambra drift, 150 m below. However, the Alhambra Vein is believed to have been seen on the 800 and 1200 foot levels beneath the Hooper Tunnel, where it was described as wide, but pyritic. Coeur d'Alene veins are known to become pyritic with depth, which may indicate that the vein exposed on these lower levels represents the uneconomic roots of the ore grade intercepts and historically mined ore higher in the structure. Hence, there is a reasonable chance that the vein will reappear with ore grades beneath the Alhambra drift and above these deeper levels. This possibility will be investigated during the first quarter of 2008, when westward drifting on the Alhambra structure begins in order to establish one or more drill stations for drilling the western portion of the South Vein beneath the ore grade surface intercept.

New Alhambra Hanging Wall Vein

An ore grade and one possibly ore grade intercept 24 m apart along strike were obtained from a previously unrecognized vein that was discovered about 4 m out in the hanging wall of the Alhambra structure. This vein is open to the east for hundreds of meters, but was not reported in several short, widely spaced cross-cuts and diamond drill holes 200 m below in the Alhambra Drift, driven on the Alhambra structure nearly 100 years ago. Subsequent Alhambra drilling will also explore the extent of this newly discovered vein. The samples for one the intercepts, SNS-704a, is currently being assayed. The other intercept, (i)SNS-705, assayed 16.2 opt.

Alhambra Footwall Veins

The surface drilling also identified minor, uneconomic silver-lead mineralization on the immediate footwall side of the Alhambra Fault in the Wallace Formation, an inherently unfavorable host for strong vein development. However, these uneconomic indications are considered important, since all ore mined deep in the mine also occurred on the foot wall of the fault. It was learned during the drilling that the deep footwall mining was terminated upward as a result of the ore shoots acquiring large quantities of galena, which was undesired when those deposits were being mined, not the result of decreased grades or widths such as might have been caused by the appearance of narrow bands of argillitic host strata. It is apparent that the intervening elevations between the uneconomic footwall intercepts drilled this summer and the deep stopes contain the most favored Silver Belt host strata and that historic exploration is nearly absent. Therefore, prospects appear excellent for finding ore on the footwall side of the fault at intermediate elevations extending approximately from within 100 m beneath the Hooper Tunnel to at least 800 m below. Testing of this interval, as well as the remainder of the Alhambra structure described above, will ensue as drill station opportunities are made available by a planned cross-cut and drift on the South Vein structure over the course of the next year.

Steep Lead and Gray Copper Veins

These veins, discovered and mined in the eastern part of the Crescent's upper reaches nearly 100 years ago, were partial objectives of the first three holes drilled during the summer program. At least one hole, SNS-101, is believed to have intercepted both veins, as well as an additional vein that may possibly be the South Vein. All three veins were about one half meter each in thickness and contained 1 to 5 opt Ag and one also contained 6% lead. Although probably uneconomic in these intercepts, the intercepts may indicate that the Steep Lead and Gray Copper vein structures extend as much as 130-200 m along strike from where they were formerly known. SNS projects both veins to the Hooper Tunnel level, where they will be explored in all holes drilled from the first planned underground drill site.

Old Ore Reserve Block

The initial underground drill site is at the top station of the main Crescent shaft, where adequate head and tail room create an ideal drill site opportunity. A particular novelty of this location is that all horizontal and downward directed drill holes will pass through a small, long-known 26 opt ore reserve block established from drift sampling about 20 m from the drill site. The multiple, closely spaced intercepts are expected to provide a good illustration and test of the adequacy of core drilling to assess grade and width of Silver Belt ore.

Immediate Plans

After a brief servicing in Coeur d' Alene, Idaho the drill will be moved underground during the second half of November to begin the 100,000 foot underground drill program. An additional underground drill will be added during the first quarter of 2008, after an adequate number of drill stations have been prepared to keep both drills continuously busy for the duration of the Phase II underground exploration project. Due to improved logistics and shorter average hole depths, the underground drilling is expected to proceed at a substantially faster drilling rate per drill than the surface drilling.

It is anticipated that renovation of the western part of the Hooper Tunnel will soon make another drill station available at the old Alhambra Raise, which connects the Hooper Tunnel to the higher Alhambra Drift. As this drilling opportunity materializes, preparations for cross-cutting to the South Vein will have begun, as well as westward drifting on the Alhambra from the Hooper Tunnel.

(i)In the November 13, 2007 press release, the SNS-705 weighted average for the new hanging wall vein intercept was incorrectly reported as extending from 905.0 to 909.26. The weighted average extends from 905.0 to 912.42, a 7.42 foot core length.

SNS confirms that it does not hold any asset-backed commercial paper. SNS total cash and cash equivalents of approximately $18 million are held in cash and guaranteed income certificates with no fixed maturity.

(TSX VENTURE:SNS) is an exploration mining company, whose primary asset is the 100% owned Crescent Mine located in Kellogg, Idaho - one of the largest silver districts in North America with over one billion ounces of silver produced. The property consists of 24 patented mining claims over approximately 350 acres, alongside 15 acres of surface rights. The Company currently has a comprehensive and well-funded drill program underway. Their main focus is on upper country surface drilling and underground drilling on the Alhambra and South Veins, as well as restoration of the Hooper Tunnel, drifting and cross-cutting.

Historical resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Crescent Mine will require considerable further evaluation, which the Company's management and consultants are in the process of completing.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

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