Silver Range Resources Ltd.

TSX VENTURE : SNG
TSX VENTURE : SNG.WT


Silver Range Resources Ltd.

November 20, 2012 08:00 ET

Silver Range Announces Initial Resource Estimate and Excellent Metallurgical Results from Keg Deposit, Silver Range Project, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 20, 2012) - Silver Range Resources Ltd. (TSX VENTURE:SNG)(TSX VENTURE:SNG.WT) ("Silver Range" or "the Company") is pleased to announce that it has received the first independent resource estimate for its wholly owned Keg Deposit and results from an initial program of metallurgical test work for that mineralization. Highlights include:

  • At a cut-off grade of 16 g/t silver, the Keg Deposit hosts an inferred resource of 39.8 million tonnes grading 30.3 g/t silver together with significant zinc-copper-lead-tin-indium values, with contained metal estimates of 38.7 million ounces silver, 675 million pounds zinc, 228 million pounds lead, and 131 million pounds copper.
  • Metallurgical results from seven drill core composites show that the Keg Deposit mineralization responds very well to conventional copper/lead/zinc flotation processing with excellent recoveries of payable metals and acceptable concentrate grades in copper, lead and zinc concentrates.

"We are very pleased to have established nearly 40 million ounces of silver in our first resource estimate for the Keg Deposit. Based on the relatively high gross metal value per tonne and very positive metallurgical test work results, Silver Range will immediately initiate engineering studies that will enable completion of a preliminary economic assessment," stated Doug Eaton, Silver Range's President and CEO. "The Keg Deposit is only one of several promising bulk-tonnage/high-grade zones identified by the Company on its camp-scale Silver Range Project. The potential for additional resources, access to existing infrastructure and favourable geometries within the Keg Deposit, should all enhance the project's economics."

The Keg Deposit or the Keg Main Zone has been traced by drilling for a length of 1,100 m, across approximate true widths of 50 to 250 m through a vertical depth of 350 m starting from surface. The mineralization remains open along strike to the west and downdip. It is one of 24 mineralized zones that have been discovered to date at the Silver Range Project.

The Keg Main Zone hosts a mixture of common sulphide minerals, which occur as fracture filling and in skarn replacement horizons within a broad structural corridor that cuts east-west across a section of clastic, cherty and carbonate-rich sedimentary rocks. It is located in an area with very few bedrock exposures, but is marked by strong soil geochemical and geophysical anomalies.

Resource Estimate

The Keg Main Zone mineral resource estimation was completed by Gary Giroux, P.Eng., MASc. (Giroux Consultants Ltd.) who is a qualified person and independent of the issuer, based on the criteria defined by National Instrument 43-101. A summary of inferred mineral resources is tabulated below:

Inferred Resource Grades
Cut-off
(Silver g/t)
Tonnes Silver
(g/t)
Lead
(%)
Zinc
(%)
Copper
(%)
Tin
(ppm)
Indium
(ppm)
Silver
Ounces
10 63,970,000 23.63 0.21 0.64 0.12 224.5 5.07 48,599,419
12 54,640,000 25.80 0.22 0.68 0.13 238.5 5.29 45,323,287
14 46,730,000 27.97 0.24 0.72 0.14 252.0 5.50 42,022,245
16 39,760,000 30.25 0.26 0.77 0.15 265.7 5.77 38,668,984
18 33,900,000 32.55 0.27 0.81 0.16 278.8 6.02 35,476,576
20 29,210,000 34.74 0.29 0.85 0.16 292.5 6.24 32,625,139
22 25,390,000 36.79 0.31 0.89 0.17 303.4 6.44 30,031,947
24 21,990,000 38.94 0.32 0.92 0.18 315.7 6.63 27,530,378
26 18,970,000 41.16 0.34 0.96 0.19 328.8 6.85 25,103,467
28 16,470,000 43.31 0.36 0.99 0.19 341.8 7.10 22,933,629
30 14,340,000 45.44 0.37 1.02 0.20 355.3 7.24 20,949,732
32 12,520,000 47.54 0.39 1.05 0.20 366.9 7.33 19,136,147
34 10,940,000 49.65 0.41 1.07 0.21 379.9 7.41 17,463,351
36 9,570,000 51.75 0.44 1.09 0.21 390.1 7.41 15,922,575
38 8,430,000 53.75 0.46 1.11 0.21 399.8 7.48 14,567,903
40 7,480,000 55.63 0.48 1.12 0.21 409.4 7.47 13,378,323

Data generated during the various drill programs conducted at the Keg Main Zone were independently reviewed by Giroux Consultants Ltd. as part of the resource study. The resource estimate for the Keg Main Zone was initiated by constructing a wire-frame 3D solid model in "GEMS". Three-dimensional solids were manually digitized from the available drill data and were used to constrain the interpolation of mineralization. The model was constructed based upon lithological boundaries and structural controls. A total of three different lithological units were used in the modeling process.

Further details of the estimation procedure will be available in a NI 43-101 report, which will be posted on SEDAR (http://www.sedar.com/), no later than 45 days from the date of this news release.

Metallurgical Test Results

The metallurgical test work was overseen by Melis Engineering Ltd. and was conducted by SGS Canada Inc. at its facility in Lakefield, Ontario. The work encompassed preparation and analysis of seven composites of drill core, comminution testing, open cycle and lock cycle flotation tests, gravity recovery tests, concentrate analysis and physical and chemical characterization of tailings.

The following table compares head grades versus recoveries obtained from lock cycle tests.

Silver Range Resources Ltd. -Keg Main Zone Metallurgical Test Work
Lock Cycle Tests - Comparison of Head Grades and Recoveries
Assay Head Grade % Recovery
Composite Zinc
%
Lead
%
Copper
%
Silver
g/t
Indium
g/t
Zinc Lead Copper Silver
1
Indium
2
A 0.69 0.62 0.18 89.1 1.7 81.5 82.9 62.3 84.7 83.2
B 2.30 0.30 0.60 56.2 15.6 92.4 82.9 80.2 80.7 96.1
C 1.67 0.34 0.31 44.1 13.1 92.0 84.9 75.3 81.5 69.4
D 0.89 0.27 0.10 32.3 8.8 85.7 82.4 59.0 80.3 77.4
E 1.28 0.15 0.14 21.1 19.5 92.3 77.5 72.2 72.0 93.3
F 1.14 0.28 0.19 32.7 9.1 87.5 83.9 67.6 80.6 77.9
Average 1.33 0.33 0.25 45.9 11.3 88.6 82.4 69.4 80.0 82.9
Overall 1.36 0.31 0.27 41.6 11.4 85.2 84.8 71.4 82.5 80.1
Notes: 1. Combined silver recovery to lead and copper concentrate.
2. Combined indium recovery to zinc and copper concentrate.
3. The Overall Composite was a blend of Composites A to F.

The following paragraph contains comments and observations regarding recoveries and concentrate grades:

  • Excellent silver recoveries averaging 80.0% were achieved, with an average of 57.2% recovery to lead concentrate assaying on average 5,816 g Ag/t, and 22.7% recovery to copper concentrate assaying on average 1,458 g Ag/t. An additional amount, an average of 8.2%, reported to the zinc concentrate which assayed an average of 136 g Ag/t. Silver head grade did not have much impact on overall silver recovery.
  • Zinc recoveries to zinc concentrate averaged 88.6% and were generally over 90% for composites with zinc head grades greater than 1.0% Zn.
  • Lead recoveries to lead concentrate averaged 82.4% and were all greater than 77.5%.
  • Copper recoveries averaged 69.4% and generally followed copper head grade.
  • Zinc concentrate grades of greater than 45% Zn were achieved on composites with head grades greater than 1.0 % Zn.
  • The lead grade in the lead concentrate, which averaged 65% Pb, was independent of the head grade of the composites. Excellent lead concentrate grades were achieved even down to a head grade of 0.15% Pb.
  • Excellent copper grades were obtained in the copper concentrate, averaging 27.2% Cu, even for the composites with relatively low copper head grade.
  • The majority of the recoverable indium reported to the zinc concentrate, averaging 74.3% recovery and assaying an average of 320 g In/t. A lesser amount, 8.6%, was recovered to the copper concentrate assaying an average of 150 g In/t. No indium reported to the lead concentrate. Indium head grade did not seem to have an impact on overall indium recovery.
  • The average tin grades were 1.99% Sn in the copper concentrate, 0.44% Sn in the lead concentrate and 0.04% in the zinc concentrate. The majority of the tin, an average of 60%, was not recovered and reported to the final float tails which had an average tails tin assay of 0.025% Sn.

Geological modelling and data verification were conducted by Archer, Cathro & Associates (1981) Limited. Matthew R. Dumala, P. Eng., is the Company's designated qualified person for geological information in this news release. Block modelling for resource calculations was performed by Gary Giroux, P. Eng. of Giroux Consultants Ltd. while all metallurgical test work was overseen by Lawrence A. Melis, P. Eng. of Melis Engineering Ltd., both of whom are qualified persons and independent of the issuer, based on the criteria defined by National Instrument 43-101.

About Silver Range Resources Ltd.

Silver Range was created through a spin-out of assets from Strategic Metals Ltd and currently has more than $7 million in cash. The Company is focused on its wholly-owned Silver Range project, where multiple bulk-tonnage and high-grade mineralized zones have been located in an area of exceptional infrastructure near the town of Faro, Yukon Territory.

ON BEHALF OF THE BOARD

W. Douglas Eaton, President and Chief Executive Officer

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 release.

Contact Information

  • Silver Range Resources Ltd. - Corporate Information
    W. Douglas Eaton
    President and C.E.O.
    (604) 688-2568

    Silver Range Resources Ltd. - Corporate Information
    Bruce A. Youngman
    Chairman
    (604) 687-2522

    Silver Range Resources Ltd. - Investor Inquiries
    Richard Drechsler
    Corporate Communications
    (604) 687-2522 or NA Toll-Free: (888) 688-2522
    rdrechsler@silverrangeresources.com
    www.silverrangeresources.com