Huldra Silver Inc.
TSX VENTURE : HDA

Huldra Silver Inc.

December 06, 2010 09:23 ET

Huldra Silver Inc. Receives Drill Core Sample Results With Assays Up to 13736 gm/Tonne Ag or 441.61 oz/Tonne Ag at Treasure Mountain and Announces a Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - Huldra Silver Inc. (the "Company" or "Huldra Silver") (TSX VENTURE:HDA) is pleased to announce it has received complete assay results from an 17 hole HQ sized diamond drill program completed in September 2010. The samples assayed up to 13736 gm/tonne Ag (441.61 Oz/tonne), 60.05% Pb, 2.49% Zn, and 2.33% Mn in hole number 8 from 14.19m to 14.26m. All samples were analyzed at the ACME laboratory in Vancouver, B.C., a full service, ISO 9001:2008 accredited analytical laboratory. All lab quality control protocols were observed. A complete list of assays and summary results along with a drill location map can be viewed on our website at www.huldrasilver.com.

Drill Program Summary and Highlights

The first 15 holes of the drill program were designed to follow up on surface sampling with assays of up to 6650 g/tonne Ag were received (August 25, 2010 news release) with the primary objective was to determine whether a small open cut bulk sample of up to 10,000 tonnes can be removed. Management has determined that based on the surface showing and the drill results the company will proceed with the bulk sample in the spring of 2011.

Assay Highlights:        
Hole 5 from 6.55-6.7m: 2121 g/tonne Ag 24.3%Pb 3.99%Zn 2.05%Mn
Hole 8 from 7.65-8.0m: 2584 g/tonne Ag 47.98%Pb 2.27%Zn 1.87%Mn
Hole 8 from 14.19-14.26m: 13736 g/tonne Ag 60.05%Pb 2.49%Zn 2.33%Mn
Hole 9 from 5.98-6.06m 6393 g/tonne Ag 74.41%Pb 1.22%Zn .89%Mn
Hole 9 from 6.5-7.07m: 1259 g/tonne Ag 3.73%Pb .73%Zn 2.25%Mn
Hole 9 from 7.07-7.31m: 4921 g/tonne Ag 31.25%Pb 9.52%Zn .99%Mn
Hole 10 from 6.09-6.29m: 5072 g/tonne Ag 55.82%Pb 2.75%Zn .45%Mn
Hole 10 from 8.63-8.71m: 2989 g/tonne Ag 20.77%Pb 1.43%Zn 1.15%Mn
Hole 15 from 17.76-17.9m: 781 g/tonne Ag 7.68%Pb .23%Zn 2.83%Mn
Hole 15 from 17.9-18.1m: 462 g/tonne Ag .96%Pb .49%Zn 1.57%Mn
Hole 15 from 18.1-18.5m: 1053 g/tonne Ag 7.59%Pb 1.48%Zn 4.11%Mn

Holes 1, 2, 3 and 4 failed to intersect significant mineralization and were stopped shortly after passing through a dyke that may have disrupted the mineral zone. Hole 7 was drilled down a previously unmapped fault. Upon review of the logs and program we believe that there are at least 3 different dykes in close proximity to one another and to mineralization. Samples were selected on the basis of visual observation of the cores that were split manually, with one half being submitted for analyses.

Holes 16 and 17 were drilled approximately 190m to the east of the historic East Zone in what has been described previously as the East Zone extension. Preliminary observations are that the area is distinctly different than the east zone in mineralization and structure. Massive Galena was encountered at surface on this structure 100m further east assaying 2920 g/tonne Ag and 38.5% Pb over .3m (October 13, 2010 news release). For future reference this will be referred to as the JK Vein.

Assay Highlights:        
Hole 16 from 6.1-6.7m 256 g/tonne Ag .79%Pb 10.01%Zn 14.56%Mn
Hole 17 from 8.53-8.83m 166 g/tonne Ag .96%Pb 1.76%Zn 9.8%Mn

The JK vein occurs in weather arkosic rocks where at shallow depths encountered at shallow depths in Holes 16 and 17 is partially oxidized. The vein material has a white porcelanous appearance and minor amounts of sphalerite and no associated dyke was encountered. Samples from the vein will be submitted to a mineralogist for further study. The company is also reviewing previous metallurgical studies to determine if the Manganese encountered can be extracted and marketed.

Initial drilling in 2011 will concentrate on the JK vein based on the size of the structure and the encouraging initial results. Drilling in the area will also step off the JK vein to the north and south to test for extensions of the east zone or other mineralized dykes.

2011 Exploration and Development

Portal reconstruction and a vent raise have been completed on Level 1 of the Main Mine area where a NI 43-101 compliant resource estimate in 2009 reported a total vein indicated resource diluted to a mineable width of 1.2m, using a 10oz/tonne Ag cut-off, of 33,000 tonnes grading 26.68oz/tonne Ag, 4.16%Pb, and 3.8% Zn and a total vein inferred resource, using a 10oz/tonne Ag cut-off, of 120,000 tonnes grading 29.76oz/tonne Ag, 2.79%Pb, and 4.36% Zn. An underground inspection has been conducted and we will use this information to update our mine planning and design for both a bulk sample and a full mining permit.

All of the background environmental monitoring for this year has been completed in preparation for re-submitting in early 2011 an application for a full mining permit. This work has been conducted in consultation with the British Columbia Ministries of Mines and the Environment.

In addition the company is designing a more extensive exploration program for 2011 that will include:

  • Geochemical sampling on both a previously discovered soil anomaly in the valley below the mine and on the Sutter Creek side of the mountain where surface samples of up to 9221 g/tonne Ag were reported (August 25, 2010 news release). Based on these finding drill programs will be designed for these areas.
  • Once re-construction of portal 3 has been completed underground drilling will commence on this level to follow up on historical work.

Non-Brokered Private Placement

The Company is also pleased to announce a non-brokered private placement (the "Offering"), which will provide the Company with working capital to use for its Treasure Mountain Project. The Company has agreed to issue 1,600,000 units (each, a "Unit") at a price of $0.52 per Unit for gross proceeds of $832,000. Each Unit will consist of one common share of Huldra and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share of Huldra at a purchase price of $0.75 per share for 18 months from the date of closing of the Offering, subject to a right of call by the Company under certain conditions. The Offering is subject to the approval of the TSX Venture Exchange and applicable securities laws.

Technical information in this news release has been reviewed and approved by Erik Ostensoe, P. Geo., the Company's independent Qualified Person as defined by NI 43-101. Huldra Silver is currently working on plans to put the Treasure Mountain Project, located 3 hours east of Vancouver, BC, into development subject to permitting and financing. The Company is also actively assessing other opportunities for acquisition and development.

On behalf of the Board of Directors

Ryan Sharp, MBA, President, CEO & Director

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's overall business development objectives and plans. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, and include discussion of the Company's planned work to be undertaken as a result of the Company's receipt of the Mines Act Permit, and that the Company intends to put the Treasure Mountain Project into development. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with silver exploration, (3) a decreased demand for silver, (4) any number of events or causes which may delay exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (5) the risk that the Company does not execute its business plan, (6) inability to finance operations and growth, (7) inability to obtain all necessary permitting and financing, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements, except in accordance with applicable securities laws. Additional information about the Company and these and other assumptions, risks and uncertainties is available in the Company's public filings with Canadian securities regulators, available on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor Its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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