Silver Bear Resources Inc.
TSX : SBR

Silver Bear Resources Inc.

April 02, 2012 07:00 ET

Silver Bear Identifies Target Mineralised Zones and Provides Update on Results From Its 2011 Exploration Program

TORONTO, ONTARIO--(Marketwire - April 2, 2012) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) is pleased to announce the final drill results of its 2011 exploration program with respect to its Mangazeisky silver property located in Yakutia, Russia (the "Property"). As shown in Figure 1, the Property hosts more than 100 silver occurrences in a major north-northwest trending mineralized structure that stretches along a 35 kilometre corridor. Drilling has confirmed management's belief in the potential to increase the current NI 43-101 compliant mineral resource estimate of 1.1 million tonnes containing 17.9 million ounces silver at 518 g/t Ag of 'Indicated' mineralization and 1.7 million tonnes containing 30.5 million ounces silver at 562 g/t Ag of 'Inferred' mineralization, as set out in its technical report dated September, 2011 (see SEDAR Press Release, September 28, 2012). While the overall Mangazeisky property license covers 570 square kilometres, the area containing Silver Bear's NI 43-101 mineral resource estimate (at Vertikalny) represents a very small land tenure in this total license area. As set out in its press release dated December 4, 2011, the Company announced the first results of its 2011 drilling program and identified several deep holes on its Vertikalny Deposit which intersected mineralization. Final assays from drilling have are listed in Table 2. The highlights include:

  • 1.00m @ 349g/t Ag in V11-189
  • 0.50m @ 493g/t Ag in V11-182
  • 1.25m @ 230g/t Ag in V11-182
  • 0.90m @ 246g/t Ag in V11-1772.90m @ 137g/t Ag (including 0.80m @ 306g/t Ag) In V11-189

Drilling completed during the 2011 exploration program identified additional zones of potential mineralisation in the Central Zone at Vertikalny which the Company intends to explore further during its 2012 exploration program. Figure 2 illustrates the approximate location of the Central Zone's potential mineralisation.

Table 1 - Target Mineralisation

Zone Silver (g/tAg) (range) Tonnes (Million) (range)
Central East (east parallel and joining structures) 300 - 400 0.5 - 1.0
Central Main (main structure) 250 - 350 0.3 - 0.4
Northwest Zone (main structure) 250 - 350 0.1 - 0.3

The reader is cautioned that the potential quantity and grade given in the table above is conceptual in nature, that there has been insufficient exploration conducted to date to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Commenting on these results, Nick Fox, VP of Exploration stated, "Based on the discovery of multiple zones of mineralisation both at depth and near surface in the southern section of the Central Zone of Vertikalny, management believes that these areas hold the potential for hosting more silver bearing minerals and is making these areas a priority for drilling in its 2012 program. Further, the frequent occurrence of elevated gold and significant copper values approaching the porphyry intrusion is promising."

To view FIGURE 1: MANGAZEISKY LICENSE SHOWING VERTIKLANY RESOURCE AND HISTORICAL, please visit the following link: http://media3.marketwire.com/docs/779004_fig_1.pdf

To view Figure 2 - Central Zone Target Mineralisation, please visit the following link: http://media3.marketwire.com/docs/779004_fig_2.pdf

Table 2 - Drill Assays

ZoneDrill
Hole
Depth
From
Depth
To
*
Inter-
cept
Width
(m)
Silver
g/t
Gold
g/t
Lead
%
Zinc
%
Northwest zoneV11-161147.5148.51.00134 2.501.68
V11-161157.1158.11.001090 16.4018.10
V11-163261.95262.30.3587.3 2.998.83
V11-164 nsv
V11-165181.60182.601.0054 0.781.95
V11-165215.20216.201.0054 0.809.04
V11-169 nsv
V11-18644.5045.501.00538 2.102.20
Central Zone: S-flankV11-162C76.8080.203.40354 6.313.10
incl.1.40583
V11-162C134.20134.800.6091 0.361.53
V11-16881.2582.301.0584 2.070.71
V11-16895.8596.400.5579 7.831.41
V11-17141.6042.200.6092 1.494.05
V11-174 nsv
V11-176 nsv
V11-19124.3525.651.3087 8.772.74
Central DeepsV11-177427.40428.500.902460.485.152.05
V11-18293.0093.500.50493 0.839.75
V11-182347.45348.701.25230 5.871.00
V11-182350.70352.401.70124 1.520.65
V11-187A81.9582.700.75172 0.760.67
V11-187A162.50163.501.0055 1.430.63
V11-187B308.40309.000.60252 0.274.89
V11-187B313.50314.200.70224 3.745.06
V11-187B315.20317.202.0077 0.534.23
V11-187B318.20319.201.0058 0.421.55
V11-187B323.50324.501.0067 0.841.16
V11-187B423.20423.400.202480.750.571.95
V11-187B430.80431.801.00640.431.291.97
V11-187B435.50437.001.501500.330.270.41
incl.0.50318
V11-187B439.00439.800.8052 0.100.16
V11-187B441.30443.902.60157 0.922.69
V11-187B453.00455.002.00970.480.261.16
V11-18997.5098.000.5088 0.820.75
V11-189125.20126.201.00349 1.210.91
V11-189300.60301.300.7070 0.241.29
V11-189303.70304.701.0052 0.100.32
V11-189306.70309.602.90137 0.231.01
incl.0.80306
V11-189324.00325.001.0086 0.131.19
V11-189327.40328.300.9082 0.342.37
V11-189337.00337.600.6059 0.170.72
V11-19091.7093.001.3063 0.206.32
V11-190112.50113.000.50167 0.391.41
South East ExtensionV11-17393.6096.002.40129 0.770.24
incl.0.40206
V11-180 nsv
V11-183 nsv
V11-183B46.9047.400.50199 8.890.34
V11-184 nsv
Nizhniy Endybal ProspectEND-14B24.7025.100.40242 6.330.08
END-14B30.1031.000.9084 1.370.23
END-14B41.0042.001.0079 1.480.30
END-14B97.7098.300.60640 0.490.32
END-14B105.70106.300.60183 0.240.59
END-15A nsv
END-16104.00105.001.00144 0.020.03
END-16124.00125.001.0059 0.060.03
END-16159.00160.001.00145 0.020.01
END-16161.00162.001.0059 0.010.01
END-16163.00165.002.00362 0.050.02
incl.1.00508
END-1713.7014.200.50102 0.360.08
END-1777.5078.501.0060 0.000.02
END-1782.5089.507.00100 0.060.03
END-1794.5095.501.0052 0.020.04
END-1796.5097.501.00356 0.020.08
END-17104.50105.501.00508 0.020.10
END-17114.50115.501.0090 0.010.04
END-17120.50121.501.00176 0.050.07
END-17206.50207.501.00263 0.090.07
END-1862.8063.500.70206 0.030.01
END-1871.0072.001.00670.530.030.06
END-1889.0090.001.00280.730.040.02
* True width is approximately 60% of the quoted intercept width
nsv = no significant values (above 50g/t Ag);
Holes abandoned due to technical difficulties before reaching target depth: V11-162,V11-162A, V11-162B, V11-164, V1 V11-166A, V11-172, V11-174, V11-174A, V11-174B, V11-181, V11-181A, V11-183, V11-183A, V11-190
Twinned holes drilled on Central Zone for metallurgical testwork: V11-167, V11-170, V11-172, V11-175, not part of this
Holes not sampled owing to lack of visible mineralisation: V11-178, V11-179, V11-185, V11-188

Interpretation of assay results from the drill-core at Nizhniy Endybal, the area located approximately 3 kilometres from the Vertikalny deposit, remains ongoing. Some of the 2011 assays (listed in Table 2) include:

  • 0.60m @ 640g/t Ag in END-14B
  • 2.00m @ 362g/t Ag (including 1.00m @ 508g/t Ag) in END-16
  • 7.00m @ 100g/t Ag in END-17
  • 1.00m @ 356g/t Ag in END-17
  • 1.00m @ 508g/t Ag in END-17

Diamond drill holes completed at Nizhniy Endybal in 2005 included three significant stratigraphically-controlled silver-bearing intersections with vertical widths from 4 metres to 64 metres. Drilling completed during 2011 has confirmed this mineralisation, which has been determined to be hosted in at least three different sandstone units of 15 metres to 60 metres thickness, enclosed by interbedded siltstones. The sandstones are siderite-stockworked to varying intensity, and mineralised in proximity to steep cross-cutting hydrothermal feeder structures. The silver content depends on the level of silver-sulfosalts (Freibergite) precipitated in the fracture-vein network. An assessment of target mineralisation based on the Company's analysis of its 2011 drilling data and historical work is pending. Based on management's initial interpretations, the following characteristics are favourable:

  1. The prospect has multiple, thick, gently dipping mineralised bodies;
  2. The silver-bearing sandstone units are outcropping on a vertical cliff-face, on the hill-slope above, and have now been drilled below the valley floor;
  3. The mineralisation is open to the north and south along strike, and to depth; and
  4. Silver is predominantly hosted in sulfosalts and not finely disseminated in galena as is the case at Vertikalny (see Table 2 lead assays).

Future exploration of this area will remain focused on defining the west to east lateral extents and to determine the geometry of potential silver concentrations.

Commenting on the overall exploration results, Mark Trevisiol, President and CEO of Silver Bear stated, "I believe that the 2011 drill program was successful in identifying the above target mineralisation opportunities. Follow up diamond drilling work will enhance drill hole spacing and density which could potentially lead to an updated NI 43-101 mineral resource estimate later this year. Any additional mineral resources identified will enhance the strong economics of the project which were released in the Preliminary Economic Analysis (PEA) on September 28, 2011."

2012 Exploration Work Plan

Management of the Company is currently developing its 2012 exploration program. The main focus of the program will be on:

  1. Mineral resource estimate extensions of the Northwest Zone where 1.0m @ 538g/t Ag was intersected in 2011;
  2. Upgrading confidence level of inferred resources to that of indicated resources; and
  3. Increasing drill density around the target mineralization in the above noted zones as well as at Nizhniy Endybal.

Geological Sampling Procedures

A Quality Assurance/Quality Control program is part of the drilling program on the Mangazeisky deposits. This program includes chain of custody protocols as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the drilling. Prior to 2011 analysis was carried out at Russian certified laboratories in Yakutsk and Aldan. Analysis for 2011 was completed by ALS Chemex in Chita, Russia.

Mr. P. Gribble, FIMMM C.Eng, of Tetra Tech (formerly Wardrop), is the independent qualified person who prepared the mineral resource estimates disclosed herein, and has reviewed the scientific and technical information contained in this news release.

Tetra Tech completed a NI 43-101 Technical Report supporting the mineral resource estimate. Tetra Tech also completed the preliminary economic assessment ("PEA") discussed in this news release, released by Silver Bear September 28, 2011.

Mark Trevisiol P.Eng, President and CEO of Silver Bear is the Company's designated qualified person under National Instrument 43-101 and has reviewed and approved the scientific and technical information in this press release.

Forward-Looking Information

The PEA is preliminary in nature and is based on a number of assumptions that may be changed in the future as additional information becomes available. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risks factors include but are not limited to risks factors identified by Silver Bear in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and Silver Bear assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law. The head office of Silver Bear Resources is located at:

65 Queen Street West
Suite 805, P.O. Box 71
Toronto, ON M5H 2M5
For further details, please visit www.silverbearresources.com.

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