Source Exploration Corp.
TSX VENTURE : SOP

Source Exploration Corp.

April 13, 2010 09:01 ET

Source Announces NI 43-101 Indicated and Inferred Mineral Resource for San Acacio Silver Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2010) - Source Exploration Corp. (TSX VENTURE:SOP) ("Source'' or "the Company") is pleased to announce that a National Instrument ("NI") indicated and inferred resource estimate has been completed for the San Acacio deposit by PEG Mining Consultants Inc. ("PEG"). Source's external consultants have advised that there is excellent potential to expand both the near surface resource amenable to open pit mining as well as the deeper resource more suitable for underground mining. An underground drilling program is currently underway to potentially extend to depth the high - grade mineralized shoots mined in historical stopes - see News Release April 8, 2010.

Highlights

The base case for reporting the mineral resource estimate used a silver equivalent ("AgEq")(i) cut -off grade of 45 grams tonne ("g/t"). Highlights of the estimate include:

- Indicated Resource of 1.49 million tonnes at an average grade of 84.9 grams per tonne silver (g/ t Ag) and 0.19 grams per tonne gold (g/t Au) containing 4.05 million ounces of silver and 9,000 ounces of gold or 4.59 million silver equivalent ounces.

- Inferred Resource of 3.44 million tonnes at an average grade of 80.0 g/t Ag and 0.16 g/t Au containing 8.84 million ounces of silver and 17,400 ounces of gold or 9.89 million silver equivalent ounces.

- Mineralized fill Inferred resource of 0.74 million tonnes at an average grade 232.6 g/t Ag and 0.20 g/t gold containing 5.51 million ounces of silver and 4,800 ounces of gold or 5.80 million silver equivalent ounces.

Brian Robertson, President and CEO, comments, "We are extremely pleased to complete this initial Mineral Resource estimate at this early date and are aggressively working on expanding the resource and evaluating early production opportunities utilizing both open pit and underground mining methods. Our Phase 1 and Phase 2 drilling programs have identified previously unknown structures that represent encouraging exploration potential. The drilling also intersected the prolific Veta Grande vein system at a depth of 161 metres below the lowest operating level of the San Acacio mine. Our ongoing underground program is currently targeting high priority areas below historical high- grade oxide stopes.

Mineral Resource Estimate

The mineral resource estimate is based on 41 drill holes completed by Source and Silver Standard and 371 drill core assay values contained within the mineralize zones. This data was complemented with 275 underground chip samples sourced from Silver standard and Sterling Mining level plans.

Results at various silver equivalent cut-off grades are tabulated below.



Mineral Resource Estimate for San Acacio Deposit at various Silver
Equivalent (Ag/ eg)(i) Cutoff

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Mineral AgEq Cut-off Tonnage Silver Contained
Resource Class (g/t) (Mtonnes) Grade (g/t) Silver (Moz)
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Indicated 105 0.53 122.1 2.08
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85 0.86 106.6 2.93
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65 1.15 95.8 3.55
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45 1.49 84.9 4.05
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30 1.66 79.3 4.22
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15 1.70 77.8 4.25
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Inferred 105 0.97 133.7 4.15
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85 1.47 116.8 5.51
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65 2.16 100.0 6.96
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45 3.44 80.0 8.84
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30 5.04 63.8 10.33
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15 5.80 57.8 10.78
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Mineralize Fill 105 0.70 241.5 5.43
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Inferred 85 0.71 239.2 5.46
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65 0.72 236.7 5.49
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45 0.74 232.6 5.51
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30 0.82 214.4 5.62
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15 0.82 213.3 5.62
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Mineral Gold Grade Contained Ag Eq Contained
Resource Class (g/t) Gold (oz) Grade (g/t) AgEq (Moz)
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Indicated 0.22 3,700 135.24 2.30
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0.22 6,000 119.65 3.29
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0.20 7,600 108.03 4.01
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0.19 9,000 96.14 4.59
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0.18 9,700 90.22 4.81
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0.18 9,800 88.53 4.84
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Inferred 0.17 5,100 143.61 4.46
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0.16 7,700 126.62 5.97
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0.16 11,300 109.73 7.64
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0.16 17,400 89.49 9.89
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0.15 24,600 72.91 11.80
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0.15 27,100 66.52 12.41
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Mineralize Fill 0.21 4,700 254.16 5.72
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Inferred 0.21 4,800 251.83 5.75
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0.21 4,800 249.24 5.78
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0.20 4,800 244.82 5.80
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0.18 4,800 225.50 5.91
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0.18 4,800 224.37 5.91
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(i) Silver equivalent (AgEq) is calculated as the sum of the silver content plus 60 times the gold content, based on prices of US$ 14.75/oz for silver and US$ 885/oz for gold, which approximate the average prices for these metals over the last three years. (Note: total contained AgEq values may not add exactly because of rounding). Metallurgical recoveries are not taken into account.

The resource estimate was completed by Pierre Desautels, P.Geo. of PEG Mining Consultants Inc., using industry standard methods that conform with the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument 43-101, Standards of Disclosure for Mineral Projects, and utilizing Gemcom GEMS V.6.2.3.2TM software. The data and methodology utilized for the resource estimate is as follows:

Resource Estimation Process

- Mineral resources were estimated in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in NI 43-101, Standards of Disclosure for Mineral Projects.

- The Resource Estimate database contains 8147 m of diamond drill hole data and supplemented by 457 underground chip samples. Trench data was available but not used in the estimation. Data was sourced from the 1997 Silver Standard exploration program, 2004-2006 Sterling Mining Company and the more recent work performed by Source exploration in 2009-2010.

- All of the Source samples were analyzed using fire assay with AA finish. For samples grading greater than 100 g/t Ag the samples were reanalyzed using fire assay with gravimetric finish.

- All drill holes are diamond drill core and were sampled mostly at 1.3 m intervals. A comprehensive QA/QC program was in place during the Source drill program, which included the insertion of standards and duplicates at regular intervals. The QA/QC program on the historical data is not known.

- Historical density of 2.55 for the in-situ material and 1.75 for the mineralized fill was used for the resource.

- An estimated 10% void space was factored in for the Mineralized fill tonnages.

- The development of the 3D mineralized domain models used in the resource estimate were primarily on the lithological contacts and partially on a grade value above 25 g/t silver. Exceptions were made in consideration to lithological controls and zonal continuity. The mineralized fill 3D wireframe was constructed using the stope and fill intercepts in the drill hole database and supplemented from information provided by the underground level plans. The resultant mineralized fill solid was subsequently cut by a series of polygons of the old stopes digitized from a historical long section and adjusted with known mined out areas deducted from the level plans and surface observation.

- The composite intervals selected were 2.0 meters. When present, true gaps in the sampling were composited at zero grade. Voids, stope and fill intervals were ignored in the interpolation of the in-situ resource but used in the interpolation of the fill material.

- For the treatment of outliers at San Acacio, the Veta Grande domain was evaluated for both silver and gold mineralization. A combination of high grade capping and search restrictions imposed on a low threshold values was used to restrict their influence. The procedure used allows the deposit to retain the high grade assays while limiting their influence during the interpolation.

- A three-dimensional (3D) geological and block model was generated using GEMS(C) software. The block model matrix size of 5 x 5 x 4 meters was selected with consultation with the engineering team from PEG to allow for better definition of the grade within some of the narrow mineralized domains. It was also based on the size that was suitable for a selective mining unit to mine "ore" versus "waste" for both an open-pit and underground mining scenarios.

- Ordinary kriging was used for all domains. The interpolation was carried out in multiple passes with increasing search ellipsoid dimensions. Inverse distance and nearest neighbor models were used for validation.

- Classification was based primarily on the pass number and distance to the nearest sample. The area evaluated as indicated resources in the model supported mainly by chip samples was downgraded to inferred resources.

A NI 43-101 report will be finalized and filed on SEDAR within 45 days of the date of this news release.

The San Acacio property, which hosts the Veta Grande vein system, is a former silver producer located in the world renowned silver district of Zacatecas in Central Mexico. The Zacatecas Silver Belt is one of the most prolific silver producing areas in the world, hosting the Fresnillo and Zacatecas silver mines which, combined, have produced over 1.5 billion ounces of silver (Source: Western Silver Annual Report 2003). . For more information on the property please visit Source's website at www.sourceexploration.com. Mr. Sonny Bernales, P. Geo. is the Qualified Person for information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.

About Source Exploration

Source Exploration is a Canadian based mineral exploration company focused on the evaluation, acquisition and development of economic silver deposits in Mexico. Source is currently carrying out an aggressive exploration program on the prolific past producing San Acacio silver mine in Zacatecas, Mexico, as well as evaluating other potential silver properties for acquisition in Mexico.

About PEG Mining Consultants

PEG Mining Consultants Inc. is a group of experienced geologists and engineers specialized in underground & open pit mining, processing/metallurgy, and project management. The PEG team has a broad range of operations and consulting experience and skills. Further information can be found at PEG Mining's website at www.pegmining.com.

Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation. All statements, other than statements 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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