Silver Mines
LSE : SVLP

March 15, 2011 06:36 ET

Drilling Report

To: Company Announcements Officer
Australian Securities Exchange

15th March, 2011


                                    WEBBS DIAMOND DRILLING RESULTS AMENDMENT

                                                  HIGHLIGHTS

       - DDH011 intersects 3.95m @ 916g/t Ag, 0.9% Cu, 0.16% Pb and 3.42% Zn from 94.6m
	
       - DDH006 intersects 3.0m @ 408g/t Ag, 0.59% Cu, 2.54% Pb and 1.93% Zn from 81.7m and; 
                          6.0m @ 275g/t Ag, 0.39% Cu, 0.39% Pb and 2.19% Zn form 96.15m

       - DDH009 intersects 3.0m @ 261g/t Ag, 0.31% Cu, 1.30% Pb and 1.20% Zn from 23.8m

       - DDH008 intersects 2.0m @ 196g/t Ag, 0.26% Cu,  1.25% Pb and 1.23% Zn from 21.6m and; 
                          2.0m @ 180g/t Ag, 0.1% Cu, 0.68% Pb and 0.85% Zn from 37.2m

       - DDH007 intersects 6.0m @ 167g/t Ag, 0.18% Cu, 0.83% Pb and 1.53% Zn from 137.9m
	
       - Deep drilling at Main Shaft workings confirms existence of lode structure at depth >250m
	
       - Additional results from remaining holes are awaited


Silver Mines Limited (ASX:SVL, PLUS:SVLP) is pleased to announce that is has received the results for six of
the eleven recently completed diamond drill holes at the Webbs Silver project. Results have also been
received for diamond drill holes previously completed which targeted deeper mineralisation beneath the
Main Zone old workings. All results are shown in Table 1. Amendment 

RECENT DRILLING

Results from recently completed holes (DDH006, 008, 009 and 011) reveal high grade intersections that
support and locally enhance the current resource. DDH011 is particularly encouraging and continues to
demonstrate an apparent increase in grade with depth in certain areas of the Webbs South
mineralisation. Mineralisation remains open beneath DDH011 as shown in Figure 1. DDH011 also
supports the model that local variability is apparent both along strike and down dip, with key indicators
remaining structural and geological features with silver content variable in some zones.

Holes DDH008 and 009 intersected near surface, relatively narrow and moderate grade zones of silver
rich polymetallic mineralisation.


Hole DDH007, which was aimed to twin RC076, tracked above the planned target. Results from DDH007
were 6.0m @ 167g/t Ag, 0.18% Cu, 0.83% Pb and 1.53% Zn. These are comparable to the nearby hole
RC067 which intersected 9m @ 312g/t Ag, 0.27% Cu, 0.47% Pb and 2.15% Zn.

DDH006 was drilled at the Webbs Main zone. It was aimed to twin RC100 however it intersected the lode
slightly below RC100. Results from DDH006 reveal slightly lower grades over narrower widths as
compared to the RC100 intersection however this is not unexpected given the grade distribution
observed in other parts of the deposit.

Hole DDH005 was planned to twin RC045. It tracked slightly below and north of target. The results from
DDH005 (1.46m @ 46g/t Ag) as compared to RC045 (7m @ 343g/t Ag) are difficult to reconcile and
may indicate local grade discontinuity, structural disruption or other complexity at this localised zone.
The position of all diamond drill holes in relation to previous RC drilling is shown in the longitudinal
section in Figure 2.

PREVIOUS DRILLING

Results have also been received for diamond drill holes completed in 2009. These holes were targeted at
depth extensions beneath the old workings at Webbs Main, and were drilled to test for indications of the
structural and alteration indicators of the deposit at these depths. Three holes DDH001, 002 and 004 all
intersected the main lode zone at a depth of approximately 250m below surface. Grades of zinc, arsenic
and other accessory metals along with strong alteration indicate the 'main lode zone' is still present over
true widths up to 9m. Although silver grades are not considered high when compared to other parts of the deposit, 
the presence of the main lode zone and intensive alteration over considerable widths provides strong support 
for mineralisation to extend to at least this depth throughout the entire deposit.

DDH003 was abandoned short of the Main Zone, but did intersect narrow low grade zones west of the
Main Lode, supporting the existence of parallel mineralised structures to the west of the main lode zone.
The position of all diamond drill holes in relation to previous RC drilling is shown in longitudinal section in
Figure 2.

FUTURE PLANS

The Company awaits the results of five more recently completed diamond drill holes. These results will be
reported when received. Diamond core will then be available to formulate samples for a metallurgical
testwork program seeking to optimize floatation performance and silver recovery.

The Company anticipates that a 12,000m RC drilling program will commence at Webbs in early April. This
program is designed to increase and upgrade the existing resource. Drilling will also take place at
exploration targets around Webbs and at other prospects in the region. The Company looks forward to
continue reporting positive results to shareholders.

Please direct any queries regarding the content of this report to Charles Straw (CEO) on +61 2 9455 0280 
or cstraw@silverminesltd.com.au. 

Competent Person Declaration 

The information in this Document that relates to Exploration Results, Mineral Resources or Ore Reserves is 
based on information compiled by Mr David Hobby, consulting geologist to SVL, who is a Member of The 
Australasian Institute of Mining and Metallurgy. Mr Hobby has sufficient experience which is relevant to 
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 
to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of 
Exploration' for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hobby consents 
to the inclusion in the report of the matters based on his information in the form and context in which 
it appears.




                   Table 1. Diamond drilling: Hole details and intersections
                   
Hole   	MGA     MGA     Dip	Azi 	Hole 	from	to	Int   	Ag 	Cu   	Pb   	Zn     
ID      East    North           (mag)   Depth                   (m)     g/t     %       %       %

DDH001	359029	6752599	-80	281	323.0	305.27	313.70	8.43	0.89	0.08	0.03	0.05

DDH002	358914	6752594	-85	100	402.2	215.00	262.00	47.00	10	0.02	0.15	0.71

DDH002					 	234.60	243.55	8.95	16	0.02	0.2	1.92

DDH002					 	238.55	241.55	3.00	25	0.02	0.08	3.93

DDH002	 	 	 	 	 	255.20	260.85	5.65	5	0.01	0.07	0.08

DDH003	358879	6752551	-75	100	195.1	32.20	34.20	2.00	33	0.04	0.28	0.41

DDH003					 	178.50	179.10	0.60	32	0.05	0.21	0.29

DDH003	 	 	 	 	 	190.80	192.10	1.30	12	0.01	0.22	0.13

DDH004	359020	6752575	-80	280	347.1	125.40	126.40	1.00	32	0.98	0.006	0.06

DDH004						128.60	129.40	0.80	60	0.02	0.12	0.29

DDH004						159.20	160.20	1.00	32	0.02	0.21	0.37

DDH004						307.99	310.80	2.81	10	0.08	0.47	0.32

DDH004						342.30	347.00	4.70	22	0.04	0.08	1.99

DDH004	 	 	 	 	 	343.80	344.20	0.40	53	0.06	0.14	8.44

DDH005	358950	6752100	-62.5	289	120.0	106.36	108	1.64	46	0.02	0.11	0.16

DDH006	358929	6752588	-65	105	153.3	81.7	84.7	3.00	408	0.59	2.54	1.93

 	 	 	 	 	 	96.15	102.15	6.00	275	0.39	0.39	2.19

DDH007	358910	6751665	-55	280	180.0	137.9	143.9	6.00	167	0.18	0.83	1.53

DDH008	358910	6751880	-65	280	105.1	21.0	23	2.00	196	0.26	1.25	1.23

DDH008	 	 	 	 	 	37.2	39.2	2.00	180	0.10	0.68	0.85

DDH009	358893	6751833	-55	270	67.7	23.8	26.8	3.00	261	0.31	1.30	1.20

DDH011	358923	6751849	-60	268	120.1	88.6	98.55	9.95	417	0.42	0.15	1.85

DDH011					 	94.6	98.55	3.95	916	0.90	0.16	3.42

DDH011	 	 	 	 	 	106.6	107.6	1.00	627	0.54	0.41	0.70

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