Silver Bear Resources Inc.
TSX : SBR

Silver Bear Resources Inc.

September 28, 2015 11:36 ET

Silver Bear Orders Additional Long Lead Time Equipment and Awards Procurement Contract

TORONTO, ONTARIO--(Marketwired - Sept. 28, 2015) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) is pleased to announce that orders have been placed for vital long lead process equipment items, and in addition the Company has awarded a procurement services contract for the ongoing works at the Company's wholly-owned Mangazeisky Silver Project in Yakutia, Russia.

Highlights:

  • Placed order for three vital long-lead items namely; electrowinning cell processing equipment; high performance filters with built in cake-washing capability, and; mill used for regrinding the concentrate before intensive leaching, all items are expected to help increase silver recovery and minimise operating costs; and

  • Awarded procurement services contract to PT Mining, Russia ensuring the Company meets its deadlines during the tight and intensive 2015-2016 procurement window.

Long Lead Processing Equipment

Further to the order that was placed with CITIC Heavy Industries Co. Ltd. for a 500 kW (ø3.0 x 3.7 m EGL) ball mill announced in July (refer to July 16, 2015 press release for full details) the Company has entered into an agreement to purchase the emew® electrowinning cell processing equipment from Electrometals Group. This electrowinning processing equipment enables the Company to produce high grade (three 9's) solid silver powder directly from the leach solution without an intermediate carbon stage. The anticipated delivery is in time for 2016 winter road resupply. The emew® system has been available for nearly 20 years successfully installed in over 50 industrial plants worldwide. The technology offers increased production capacity, on a reduced footprint and excellent recoveries from lower concentrations.

The Company has also placed an order with Bilfinger of Italy for two high performance filters with built in cake-washing capability. These machines constitute the essential final stage in the separation of silver bearing solution from the barren solids; supplying clear solution to the electrowinning system. In addition, the Company has placed an order with Metso for a mill used for regrinding the gravity concentrate before the intensive leaching. It is anticipated that this gravity concentration and intensive leaching will minimise cyanide consumption and improve silver recovery.

Procurement Services Contract

Due to a tight and intensive procurement window the Company has awarded PT Mining of Russia a contract for procurement services for the Mangazeisky silver mine development. PT Mining demonstrated the necessary experience and skills to perform the procurement service, with the added ability to maximise the use of Russian based suppliers. It will be PT Mining's responsibility to compile packages of equipment and materials to supply complete process plant sections and take responsibility for delivery and potentially erection on site. PT Mining will work in collaboration with the Company's own procurement specialists and Tetra Tech.

Silver Bear's CEO, Graham Hill commented: "Over the 2015 field season the Company has embarked on an aggressive project implementation program and the ordering of key long-lead items such as the ball mill and the electrowinning equipment, and the award of the procurement services contract are all significant milestones in the project's development. At this time the accelerated construction and mine plan for the Vertikalny deposit is progressing well and we are confident that the Company is in the position to meet its target of commissioning silver production by the second half of 2016."

Mr. Jacques du Toit, Pr.Eng., MSc.Eng., PMP of Tetra Tech is a Qualified Persons under National Instrument 43-101 and has reviewed the scientific and technical information in this release.

About Silver Bear

Silver Bear (TSX:SBR) is focused on the development of its wholly-owned Mangazeisky Silver Project, covering a licence area of ~570 sq. km that includes the high grade Vertikalny deposit (amongst the highest grade silver deposits in the world) located 400 km north of Yakutsk in the Republic of Sakha (Yakutia) within the Russian Federation. The Company was granted a 20-year mining licence for the Vertikalny deposit in September 2013 and completed a Preliminary Economic Assessment in February 2014. The Feasibility Study, scheduled for completion in 2H 2015, is contracted to Tetra Tech in the UK with SRK and ERM as subcontractors for the mining and environmental studies respectively. Other information relating to Silver Bear is available on SEDAR at www.sedar.com as well as on the Company's website at www.silverbearresources.com.

Cautionary Notes

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 risk factors include but are not limited to risk 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.

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