First Silver Reserve Inc.
TSX : FSR

First Silver Reserve Inc.

August 31, 2005 13:01 ET

First Silver Reserve Inc.: Exploration on New Silver Targets Progressing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 31, 2005) - First Silver Reserve Inc. (TSX:FSR) announced today the following update on its ongoing exploration activities.

Mine geologists at the company's wholly-owned San Martin silver mine in Mexico have discovered two new mineralized structures adjacent and the below the existing mine workings. A series of drill intercepts have defined a mineralized structure below the lower levels of the mine that confirm the downward extension of the mineralization in a structure parallel to the main Zuloaga vein that is currently being mined. Silver and gold grades encountered are above those grades currently being mined.

The second new mineralized structure recently discovered is perpendicular to the Zuloaga vein. This structure has been accessed from the mine workings and drifting has confirmed ore grade mineralization. The aggressive exploration program within the San Martin mine has been very encouraging and plans are to accelerate the programs. The structure containing the Zuloaga vein has been traced for 5 km west of the main portal but only 2.5 km has been partially explored and mined. To date, the San Martin mine has produced 28.1 million oz. of silver from 3.4 million tonnes of ore.

At the Company's Cuitaboca Claims, optioned earlier this year, work is now under way with road rehabilitation and construction to access the site area. The Cuitaboca claims cover an area of 8,852 hectares of an essentially virgin silver district located in the Northern part of the Sierra Madre Occidental volcanic belt in the State of Sinaloa, Mexico. The Cuitaboca concessions contain at least six well defined vein structures hosting sulphide mineralization which carries high grade silver plus low grade lead, zinc, and copper. The Company plans to drill this prospective area once the road work is completed.

First Silver Reserve is a company focused on the production and exploration of precious metals in Mexico. First Silver owns and operates the San Martin Mine in Jalisco State, Mexico. The Company is in the process of developing an extensive exploration program with the goal of expanding reserves that may allow for increased production beyond the 2.1 million ounces per year average annual silver production. According to the 2003 World Silver Survey, First Silver's San Martin mine was the 14th largest primary producing silver mine in the World.



On behalf of the Board of Directors

"Len Brownlie"
Director


Note: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • First Silver Reserve Inc.
    Len Brownlie
    Director
    (604) 602-9973
    or
    First Silver Reserve Inc.
    Rod Shier
    CFO
    (604) 689-0489
    or
    First Silver Reserve Inc.
    Suite 584 - 885 Dunsmuir Street
    Vancouver, B.C., Canada ,V6C 1N5
    Toll Free 1-888-377-6676
    (604) 681-5910 (FAX)
    Email: info@firstsilver.com
    Website: www.firstsilver.com