Silver Bear Resources Inc.
TSX : SBR

Silver Bear Resources Inc.

June 16, 2014 07:00 ET

Silver Bear Resources Inc.: Silver Metallurgical Recoveries Range From 88% to 93% in Preliminary Testing

RECOVERIES SUPPORT PRELIMINARY ECONOMIC ASSESSMENT OF PROJECT

TORONTO, ONTARIO--(Marketwired - June 16, 2014) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) has completed primary leach optimisation tests on milled ore from its 100% owned Vertikalny Deposit in Yakutia in the Russian Federation.

Highlights of the milled ore sample results are listed in Table 1 below. Testing was carried out from 400 kilograms of drill core extracted from the Vertikalny deposit. The head assay ranged from 1020 grams/tonne of silver to 1150 grams/tonne of silver with an average of 1112.5 grams/tonne of silver. Silver was recovered following gravity concentration of Silver and Cyanide leaching of Silver in the gravity tailing. A silver recovery of 88.3% was achieved with a practical leach retention time of 72 hours. A silver recovery of 93.3% was achieved at a leach retention time of 144 hours, indicating potential for further optimisation. Samples were tested at various concentrations of Sodium Cyanide solution (NaCN) and various time frames as shown. Testing was conducted at SGS Metallurgical & Geochemical Laboratory in Chita, Russia.

Mark Trevisiol, President and CEO of Silver Bear, commented, "This represents another positive step for our silver project. Having a high grade silver deposit with open pit access for mining, combined with metal recoveries as demonstrated, solidifies the strong economics in our Preliminary Economic Assessment released earlier this year. We will use these very encouraging results to complete further testing to optimize our processing plant design as we move to full feasibility."

Table 1 - Metallurgical Test Results

Test Ag Recovery, % Test Time (hours) Cyanide Concentration (g/L)
Diagnostic Leach Test 89.6 Not Applicable Not Applicable
Gravity Concentration & leach test 89.2 72 5
Gravity Concentration & leach test 88.3 72 2
Gravity Concentration & leach test 93.30 144 2
Gravity Concentration & leach test 81.8 96 1
*Notes: All samples were crushed to 0.075 mm passing 80%.

Silver Bear has a National Instrument 43-101 ("NI 43-101") compliant resource estimate on its Vertikalny Deposit (Table 2) and a mining licence on the Deposit to the year 2033. The Deposit is contained within the Mangazeisky exploration property of which Silver Bear holds an exploration licence.

Table 2 -Estimated Mineral Resources Prepared In Accordance With NI 43-101

Area Cut-Off
Grade (g/t)
Indicated Inferred
Tonnes
(Mt)
Ag
(g/t)
Ag
(Moz)
Tonnes
(Mt)
Ag
(g/t)
Ag
(Moz)
Vertikalny Deposit, Central Zone 180 1.1 518 17.9 1.1 649 23.8
Vertikalny Deposit, Northwest Zone 180 0 0 0 0.5 379 6.6
Nizhny Endybal Deposit 75 0 0 0 3.2 133 13.5
Total - 1.1 518 17.9 4.8 282 43.9
  • Notes: Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves. Mr.Rob Davies, CGeol.,EurGeol.,PMP Eur.Ing. of Tetra Tech, is an independent qualified person pursuant to NI 43-101 who has verified the mineral resource estimates originally signed-off in 2011 and 2013 as current. The mineral resource estimates are disclosed above in Table 2. Cut-off grades for the Vertikalny resource and Nizhny Endybal resource are 180 g/t Ag and 75 g/t Ag respectively. Other notes:
    • Vertikalny - to be operatied initially as open pit then an underground mine with 1.2 m minimum mining width, in-situ density of 3.45 t/m3 for mineralized material, long term Silver price of $22.74/ounce Ag. The effective date of the estimated Vertikalny mineral resource is February 23, 2011.
    • Nizhny Endybal - to be operated by open pit methods, in-situ density of 2.9 t/m3 for mineralized material, long term silver price of $22.0/oz. The effective date of Nizhny Endybal estimated mineral resource is September 20, 2012.
    • Mineral resources may be subject to legal, political, environmental, social and other risks that may significantly affect the potential development of the mineral resources. See Cautionary Notes set out below.
    • Please refer to the technical report titled "Technical Report on the Mangazeisky Property" dated February 15, 2013 prepared by Andy Carter, B.Sc., C.Eng., MIMM, MASIMM, SME, Paul Gribble, FIMMM, C.Eng., Paul Daigle, P. Geo. and Jonathan Gideon, C. Eng. FIMMM the "Mangazeisky Technical Report", filed under the Company's profile on SEDAR.
    • For additional information pertaining to the results of the Company's preliminary economic assessment, readers should also refer to the PEA, titled "Preliminary Economic Assessment on the Mangazeisky Silver Project, Russia" dated February 27, 2014 prepared by Jacques du Toit, Pr.Eng., MSc.Eng., PMP, Robert Davies, B.Sc. (Hons), CGeol., EurGeol., PMP Eur.Ing. Andrew Carter, C.Eng., MIMMM, MSAIMM, SME, Anton von Wielligh, B.Eng. (Hons), Pr.Eng. ECSA, SAIMM, Michael McLaughlin, P.Eng. and Laszlo Bodi, P.Eng. (the "PEA"), which is discussed in the Company's Annual Information Form and available under the Company's profile on SEDAR.

Silver Bear Resources Inc.

The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal focus is the Mangazeisky exploration lease and the Vertikalny Deposit, over which Silver Bear has exclusive exploration/mining rights. It is located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation.

Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and its common shares trade under the ticker symbol "SBR". Silver Bear has 119,456,550 issued and outstanding common shares. 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.

Qualified Person

The metallurgical leaching tests were performed at SGS Metallurgical & Geochemical Laboratory in Chita, Russia. The Chita Lab is accredited under Certificate POCCRU.001.214U28, August 2, 2011. The tests have been reviewed and approved by Andy Carter C Eng., MIMMM of Tetra Tech and the work has been completed under the supervision of Mike Hallewell C Eng., FIMMM, FSAIMM, FMES, of SGS Labs, both individuals are independent of Silver Bear and are qualified persons under NI 43-101 standards. Mark Trevisiol P.Eng, President and CEO of Silver Bear is a qualified person under National Instrument 43-101 and has reviewed and approved the scientific and technical information in this press release. As the President and CEO of Silver Bear, Mr. Trevisiol is not considered independent.

Cautionary Notes

The preliminary economic assessment ("PEA") 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. Without limitation to the foregoing, the following are forward looking statements: the metallurgical recoveries from the primary leach optimisation tests, the PEA, including without limitation projected initial capital, sustaining costs, IRR, NPV, average grade processed, mining rate, expected mine life, expected construction period, mineral resources and pay back period. 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 uncertainties inherent to preliminary economic assessments, which are based on many assumptions that might not be realized, risks with respect to operating in Russia, downward fluctuations in silver prices, regulatory risks, including with respect to obtaining all required permits, corruption and other 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.

For further details, please visit www.silverbearresources.com

Contact Information

  • Mark Trevisiol, President and Chief Executive Officer
    Silver Bear Resources Inc.
    65 Queen Street West, Suite 825, P.O. Box 71
    Toronto ON, M5H 2M5
    +1-416-861-5893
    mtrevisiol@silverbearresources.com

    Robin Birchall
    Executive Chairman
    Silver Bear Resources Inc.
    1 Adam Street
    London, WC2N 6LE
    UK+44 771 131 3019