SNS Silver Corp.
TSX VENTURE : SNS

SNS Silver Corp.

October 19, 2009 09:25 ET

SNS Silver to Acquire Advanced Ontario Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2009) - SNS Silver Corporation ("SNS" or the "Company") (TSX VENTURE:SNS) has entered into a Letter of Intent pursuant to which SNS has received the exclusive option to acquire 100% of Northern Nickel Mining Inc.'s interest in the Golden Rose Mine consisting of 15 mining leases and 31 mining claims located in Afton and Scholes Townships in the Sudbury Mining District of. Ontario.

Free Gold was first discovered in weathered Iron Formation on the shores of Emerald Lake in 1897. In 1915-19 the Golden Rose Mining Company carried out considerable trenching on the property, excavated a 100-foot long adit with a 150-foot deep shaft. A small amalgamation mill was built and undisclosed amounts of gold recovered.

In 1935-41 the Consolidated Mining and Smelting Company of Canada Limited carried out extensive surface and underground exploration and development. The shaft was deepened to 749 feet, and an inclined winze was sunk from the 749 elevation for a length of 577 feet. A total of 15,795 feet of lateral development was excavated on seven levels and five sub-levels. A 100 tons per day mill operated between 1937 and 1941.

In 1987 Noramco Mining Corporation constructed a 400 tons per day mill on the property and carried on mine production from August 1987 to September 1988 until falling gold prices forced the suspension of activity.

Historical information, derived from the records of Noramco Mining Corporation, indicates 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-opt.) 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 re-classify 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 gold mineralization occurs primarily as free gold associated with quartz, and as plating's on the surface of coarse pyrite crystals. Gold tellurides occur as well. Mineralized zones occur as quartz veins within and in contact with a PreCambrian aged Jasper/Magnetite Iron Formation that has been traced for 4 miles across the property, and continues on strike to the east of the property. A second band of the Iron Formation also crosses the property and has a number of known, but yet to be explored gold occurrences. Iron Formation hosted gold deposits are known throughout the world and have to potential to be prolific producers.

Recent work undertaken on the project by Northern Nickel has identified targets for future exploration which is intended to determine the actual size and extent of mineralization. The latest drilling program has confirmed the historically reported stratigraphy and structure of the property. Mineralogy and alteration is also confirmed. Gold values were intersected in every hole, with grades of up to 33 g/t and visible gold was observed at a number of locations.

The property is developed by, 5 levels off of a vertical shaft to 750 feet, and 2 levels off of an inclined winze to 1000 feet. All of the past production took place above 700 foot elevation. The deepest intercept recorded on the property cut 84 feet of 14 g/pt AU below 1000 feet vertically, with many other high-grade drill intersections (0.25 – 0.35 OPT) located between the 600 foot elevation and the lowest level at 1000 foot elevation. Ramp development reaches to about 800 feet vertically providing good access to evaluate the high-grade areas.

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

David Greenway, President of SNS Silver states "This Acquisition represents the new initiative 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 discovery and production potential. We are excited to expose our shareholders to what we believe has the potential to be a high grade multi-million ounce gold resource.

With only a 1600 foot length of a 4 mile structure extensively explored, and with high-grade known below the 1000 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 and delineate the Mineral Resource by initiating a surface drill program followed by de-watering and rehabilitation of the existing ramp that will allow for underground drilling. SNS will then commence an extensive exploration program to test the unexplored targets of the Golden Rose property.

SNS will have the exclusive right to review, during a 30 day due diligence period, all data related to the Golden Rose Mineral Claims located in the Emerald Lake area of the Province of Ontario from Northern Nickel Mining Inc., a private corporation and Scorpio Gold Corporation a reporting Company trading on the TSX Venture Exchange. If the due diligence is satisfactory, SNS will initiate the following Transaction:

The Transaction: SNS will earn 100% of the Golden Rose project by paying cash of $650,000, 2,000,000 common shares of SNS over a period of 3 years, and by completing exploration commitment on the property in the amount of $750,000, the payments of cash, shares and exploration commitments falling due in instalments.

In addition, as part of the terms of acquisition, SNS is required 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 funded by Scorpio Gold and to obtain a release of Scorpio Gold's right of first refusal to acquire the Golden Rose Property.

The terms of acquisition will be subject to formal documentation and TSX Venture Exchange approval if SNS proceeds with acquisition.

Cresent Project : SNS Silver has entered into a letter of intent to divest 50% of the Cresent silver mine in Idaho for an $8 Million expenditure by Syringa Exploration. This is an excellent opportunity to monetize the Cresent mine without the need to compromise the structure of the company and SNS looks forward to the potential cashflow that will be derived from this asset upon Syringa placing the mine back into production.

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

Stephen G Mlot, P.Eng, 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.

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.

SOURCE: SNS Silver Corp.

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