SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

November 19, 2009 09:15 ET

SNS Silver and Syringa Exploration Announce Crescent Mine Plan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2009) - SNS Silver Corporation ("SNS" or the "Company") (TSX VENTURE:SNS) is pleased to provide an update regarding its joint venture initiatives with Syringa Exploration as the Crescent project advances toward a definitive production decision.

This Mine plan is the result of extensive exploration, mine rehabilitation, geological interpretation and the SNS view that that the Crescent is an economically robust resource that can be rapidly placed into production utilizing nearby milling facilities in the Silver Valley.

Kurt Hoffman, President of Syringa states : "We are most pleased with the outcome of the mine plan as it confirms the model that our technical team had initially envisioned. This plan is a key component that will allow for Syringa to secure the necessary funding that is required as it attempts to return the Crescent to its former glory as the highest grade silver mine within the Silver Valley. Our timing is fortuitous as recent rising silver prices continue to have a positive impact on the forecasted economics."

The mine plan for the Crescent Project is based on the NI 43-101 compliant resources calculated by SRK Consulting (US) , Inc., of Denver, CO. SRK utilized the surface and underground diamond drilling completed in the upper Crescent mine, from both surface and underground drill platforms. The calculated resource placed 324,000 tons of material in the indicated category with a grade of 18.7 ounces per ton silver and 211,000 tons of material in the inferred category with a grade of 19.5 ounces per ton silver. The resources were located on two veins, the Alhambra vein, a mainstay of past production, and the South Vein, a previously known with no known mining history. Both resource blocks are open on strike and dip with the inferred resources occurring peripheral to the indicated resources. The inferred resources are classified as such primarily because of wider drill hole spacing's.

The mine plan utilizes existing Crescent mine infrastructure to access the resources from underground because development work will raise up on both veins from existing mine workings and new workings to be developed. Raising up along the down dip projections of the resource blocks will enable exploration of the down dip targets concurrent with access to the known resource blocks. As the inferred resources on both veins extend down dip the furthest, development raises will access those resources first, and should ore grade mineralization be found to exist, development mining will commence, converting inferred resources to measured and proven reserves.

Mining will began with raise prep development on the Alhambra #4 level and concurrent development of an ore pass and service raise facility from the Hooper Level. Development raises are expected to be ready for driving as soon as the ore pass and service raise are completed and operational. Raises from the Alhambra #4 Level are expected to encounter ore grade mineralization in month seven to be followed with subdrift development and mining.

South Vein access requires nearly 3000 feet of development drifting to be followed by the development of ore passes and a service raise to reach the resource blocks located about 500 feet above the access level. As noted, raises will follow the vein upwards, exploring for any down dip extension of the resources. Development work is expected to take about 14 months to access and develop the South Vein resources for mining.

Initial ore production from the Alhambra vein is expected to begin in month two at a rate of 75 to 100 tpd as raise preps are installed in preparation for driving raises to reach the resource blocks. It is expected to reach the resource blocks in month seven when subdrifts and mining will commence. Following completion of the Alhambra vein subdrifts, mining is expected to scale up from the 100 tpd to about 250 tpd by month 10. In addition to the ore from the #4 Level raise preps, the extension of the Hooper Level drift on the Alhambra vein beginning in month one is expected to develop about 50 tpd of sub ore grade mineralized material. This drift will be exploring for the down dip extension of the Alhambra resources identified by the SRK work in preparation for exploring the 560 vertical feet of unexplored ground on the Alhambra vein between the Hooper Level and the Alhambra #4 Level. Should ore grade mineralization be found on the Alhambra vein in the Hooper Level drift extension, that material will be available for immediate mining.

The largest, and highest grade, portion of the SRK resource blocks are found on the South Vein and access to the vein requires about 3,000 feet of development drifting to be followed by development of 500 feet of ore pass, service raise to reach the bottom of the South Vein resource blocks. About 2,000 feet of the development drifts will be on the completely unexplored South Vein at the Hooper Level. Should ore grade mineralization be found on in the development drifts, raise preps, subdrifting and mining can began immediately. Any ore grade mineralization accessed and developed on the Hooper Level will increase the current resource base with the addition of proven and minable reserves.

If no ore grade mineralization is found at the Hooper Level, ore pass and service raise development will start in month seven. The first level, 500 feet above the Hooper Level will be completed and ready for raise prep installations in month 11 to be followed with subdrifts and mining. Production mining is expected to reach 250 tpd in month 16.

Beginning in month 16 production is expected to reach 500 tpd combined from both the Alhambra and South Veins. Exploration and development on both veins may find and develop additional resources and reserves as the mine is restarted. Should such mineralization be found, it will increase and augment the existing resource base, increasing the mine life beyond the three years for the current resources. As has been the case with the Crescent during previous operation and the other mines in the Silver Valley, ongoing exploration and development is expected to replace mined out resources and reserves. Creating a mining life for the Crescent that is much longer than that indicated by the current resource base.

About 40 people will be required on a daily basis as the work resumes in the mine. This number will grow to about 80 during peak development work. This number will then decrease to about 70 for ongoing work. As mine operations are planned for a 7 day schedule with crews working a 7 day on and 7 day off schedule, actual employment will be about double the daily requirements.

Ore produced will be custom milled and discussions to finalize that service are ongoing.

Budgeted costs for mining project cost of about $8.50 per ounce once full production is reached in month seventeen.

David Greenway, President of SNS states: I am excited to provide our shareholders with exposure to an eventual 500/tpd production scenario without the need for a dilutive capex financing. This will enable SNS to utilize its cash position to exploit higher impact exploration opportunities in the precious metals space as Syringa assumes the financial burden of ongoing development at Crescent. This places SNS shareholders in a extremely enviable position, one that few juniors have the luxury of providing, that being cash flow and discovery potential across multiple projects in a historic bull market for precious metals"

We seek safe harbor.

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.

This press release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

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